Is Bull Run Coming & Altcoin Blood Bath !!
What does Bitcoin Dominance Mean?
Bitcoin dominance is used to measure how much BTC is worth, as a percentage of all cryptocurrency values. During prolonged market shifts, it can also highlight whether demand for Bitcoin is staying above that of the market average.When the market’s value has begun to increase; BTC dominance has declined. Between February and June of last year, for example, Bitcoin’s market share halved from over 85% to 37%.
When crypto enters a bearish trend, BTC dominance often increases. Its relatively low volatility means investors can maintain (some) value with their funds. During market declines, this makes it a convenient asset for investors looking to keep their money in cryptocurrency but wanting to minimize risk.
According to our research, Bitcoin Dominance was very high in January after the bull run in December and now it is slowly raised up. Bitcoin Dominance was very high before June as the bitcoin prices hiked from June to December last year, Bitcoin Dominance suddenly decreased after these. And unfortunately, Altcoin Dominance increased and Altcoin prices also hiked up which was unexpected. From last month, Bitcoin Dominance is growing similar as before and for that reason only the Bitcoin prices is increasing constantly. As we know that Bitcoin price hiked in between the month of May this year, but it does not break its resistance level 10,000 USD. Monitoring on bitcoin prices, we can say that it will break its resistance 10,000 USD this time and we may except the bitcoin price upto 25,000 USD in the end of year. If Altcoin should grow then Bitcoin price should be stable and maintain its resistance level.
What does bitcoin dominance tell us :
If Bitcoin dominance is 50-60%: Bitcoin prices are high and it make sense to use bitcoin to trade for altcoin.
If Bitcoin dominance is 40-50%: it is a wait and see approach. But if dominance reach the high 40%, I would be tempted to do some trading for altcoins.
If Bitcoin dominance reduced to 30-40%: It means altcoins have significantly rose in prices and it make sense to get out of profit-making altcoin positions and transfer them to bitcoin.