Bitcoin dominance: Will it go up or down?
The bitcoin dominance chart plays a crucial role in determining whether altcoins will experience an upward or downward trend. Currently, the chart suggests weakness, with a lower high and lower low in dominance. This leaves the overall market share of altcoins at a critical point.
If bitcoin dominance falls below the support level of 51%, the next support is around 49%. Further support can be found at 44.4%, and in an extreme scenario, it could drop to 39% if altcoins perform exceptionally well.
Although reaching the lower support levels is unlikely in the near future, a drop to 49% could create an opportunity for altcoins to increase their value relative to bitcoin.
Continued upward trend for altcoins
The Total3 chart, which measures the market cap of altcoins excluding BTC and ETH, shows a consistent upward trend. While there have been some periods of deviation in January, altcoins have consistently bounced back and remained above the trend line.
If the resistance at $498 billion is broken, it could trigger a significant increase in the value of many altcoins. We are approaching a critical moment, and the altcoin season may heavily depend on this breakout.
In this exciting crypto bull market, it is crucial for potential traders to educate themselves about market dynamics and implement proper risk management strategies to capitalize on the opportunities and mitigate potential losses.
Hot Take: Bitcoin’s Potential High and Its Impact on Altcoins
Bitcoin’s future moves are uncertain, but we can consider two possibilities. First, Bitcoin might attempt to reach a new local high of $50,000. Second, it could remain within its current price range. The latter scenario could be highly favorable for altcoins.
Bitcoin dominance plays a key role in determining the market conditions for altcoins. If Bitcoin’s dominance drops to 49%, altcoins might experience a temporary surge in prices relative to Bitcoin. Traders should closely monitor Bitcoin’s dominance chart and seize opportunities accordingly.
As the market awaits Bitcoin’s next move, it’s important to remember that this crypto bull market is full of excitement and potential gains. To navigate this market successfully, educate yourself about market dynamics and implement effective risk management strategies. Happy trading!
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