ðĨ Bitcoin Dominance Rising: The King Is Back?
This week, Bitcoin Dominance (the percentage of total market cap in BTC) saw a sharp bounce from the same area which indicated the 2021 top last May, around 40%.
40% is a key area because this is the same area where Dominance bottomed during the 2018 bull-run top.
Since my long-term outlook is still bullish on crypto, I think that Dominance rising from this area might be a good thing. The same thing happened in September 2020 where Bitcoin saw several months of huge gains, followed up by crazy altcoin gains during the fall of Dominance in Q1'21.
On the other hand, Dominance rising is also an indication of investors becoming more risk averse and searching the safe haven of Bitcoin, see the 2018-2029 bear market.
In case Dominance will continue rising, you can expect overall less returns on alts, no matter which direction the market goes.
Happy trading!
40% is a key area because this is the same area where Dominance bottomed during the 2018 bull-run top.
Since my long-term outlook is still bullish on crypto, I think that Dominance rising from this area might be a good thing. The same thing happened in September 2020 where Bitcoin saw several months of huge gains, followed up by crazy altcoin gains during the fall of Dominance in Q1'21.
On the other hand, Dominance rising is also an indication of investors becoming more risk averse and searching the safe haven of Bitcoin, see the 2018-2029 bear market.
In case Dominance will continue rising, you can expect overall less returns on alts, no matter which direction the market goes.
Happy trading!
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