Bitcoin Dominance peaking? What could it mean?

We have seen Bitcoin dominance, measured by coinmarketcap.com, reach 2018 high of 46% last week after reaching historic lows of 32% early this year as Altcoins boomed. The main reason for this sharp decrease was the entry of many hyped ICOs getting listed in exchanges after Bitcoin reach its highs. As Bitcoin prices were viewed to be out of reach for many participants, they looked towards lower priced assets to get involved in this market.

source: https://coinmarketcap.com/charts/#dominance-percentage

However, as the market in general has corrected, most participants have gotten out entirely or moved into the predominant trading pairs used in exchanges. This has helped Bitcoin achieve the rebound we have seen towards 50%. In addition, as Bitcoin prices reach levels that were pivotal to the parabolic moves of 2017, many investors have gotten interested in taking positions.

It seems as the market wants to cycle again as some Altcoins are catching a bid this week. This has dropped Bitcoin dominance to around 43%. While Bitcoin continues to drive the direction of the market, it seems as investors are finally starting to distinguish between projects that are delivering such as EOS and those that are lagging behind. This could lead to lower Bitcoin dominance numbers but not necessarily a lower price for Bitcoin. I believe the “flight to quality” names will continue as the market continues to find its base. This is healthy price action as it will lead to improved diversification possibilities as well as to lower volatility in price.

Beware though, wild cards continue to exist in this market: regulatory changes will definitely move the market as it can impact various level of assets available, Mt Gox trustee still has over 100,000 BTC/BCH to sell, continued forks, amongst others. Participants should continue to do their research and consider the potential impact of all these factors as they review their positions or potential movements.

Do you think Bitcoin Dominance has reached a peak for this cycle? What will it mean to its price? Let me know your thoughts! I look forward to engaging with you in the comments below!

Follow me on Twitter: @NAICrypto

Don’t forget to vote, comment, follow, resteem and browse my channel for more information!

If you are like me and interested in continued personal growth, invest in yourself and lets help each other out by leveraging the resources they provide by using my referral link:
https://www.minnowbooster.com/referral/530636

DISCLAIMER: The information discussed here is intended to enable the community to know my opinions and discuss them. It is not intended as and does not constitute investment advice or legal or tax advice or an offer to sell any asset to any person or a solicitation of any person of any offer to purchase any asset. The information here should not be construed as any endorsement, recommendation or sponsorship of any company or asset by me. There are inherent risks in relying on, using or retrieving any information found here, and I urge you to make sure you understand these risks before relying on, using or retrieving any information here. You should evaluate the information made available here, and you should seek the advice of professionals, as appropriate, to evaluate any opinion, advice, product, service or other information; I do not guarantee the suitability or potential value of any particular investment or information source. I may invest or otherwise hold an interest in these assets that may be discussed here.