Crypto Daily - With very few exceptions from the altcoins, Bitcoin has dominated this bull market. With BTC Dominance well over 58%, will most of the altcoins be squeezed out of the rest of this bull market cycle?
Bitcoin dominance is continuing to rise. Currently at 58.47%, BTC dominance has just powered through resistance, and is now heading for the next resistance at 60%.
Why is Bitcoin getting all the love?
Why is Bitcoin getting all the love, while the vast majority of the altcoins continue to bleed out against the king of the cryptocurrencies? Could it be that no altcoin has managed to nail the use case within its own particular niche?Arguably, within the crypto sector, there is only really Bitcoin, with its store of value use case, and stablecoins, with their payments use case, that have really caused major disruption within these fields.
That’s not to say that some crypto projects will not also eventually succeed, but it has to be acknowledged, that thus far, the entire crypto industry is still very much a big risk environment.
Previous bull markets saw Bitcoin Dominance under 40%
When crypto really started taking off in the 2017, and then 2021 bull runs, there was a lot of promise, and investors went with this, probably hoping that the promises would be fulfilled. At these times, Bitcoin dominance fell to 35.5% in early 2018, and just under 40% in 2021.Nevertheless, in the current bull market, Bitcoin dominance is just grinding up and to the right. If Bitcoin reaches 60% dominance, the next targets are 68% and then 72%. It must also be borne in mind that Bitcoin dominance was as much as 96% back in early 2017.
Source: TradingView
As can be seen in the weekly BTC Dominance chart above, the trend is certainly still up, and it just remains to be seen whether the horizontal resistance at 58.6% can hold dominance up, and potentially reject it.
Total 3 chart shows bull flag
Source: TradingView
The Total 3 chart, which tracks the market capitalization of all cryptocurrencies, excluding $BTC and $ETH, does still look positive. The combined market cap is in a bull flag, and the 0.618 fibonacci level was tested in the midst of the Japanese stock market crash.
The Stochastic RSI momentum indicator is also looking positive, with both indicator lines crossing up above the 20 level.
OTHERS chart shows strong support for the altcoins
Source: TradingView
The OTHERS chart, tracks the market cap of all cryptocurrencies, excluding the top 10 cryptos. Therefore, this gives a more accurate picture of how the altcoins are doing. Once more, the downtrend is quite pronounced.
However, the market cap is currently being held by the 0.618 fibonacci level, with a very important horizontal resistance below this. The Stochastic RSI is heading back up, and therefore a break in the downward trend might be expected in the next couple of weeks or so.
Whether this turns into a fully-fledged uptrend that boosts the altcoins, and takes dominance away from $BTC, still remains to be seen.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
This content was originally published on Crypto Daily
