Bitcoin (BTC) accounts for more of the total value of all cryptocurrencies than at any time since June 2022.
In the latest follow-up to this week’s surge above $26,000, TradingView data shows Bitcoin market cap dominance at nearly 46% – its highest level in nine months.
New dominance “spike” indicates coming trend change
Up almost 3% since the weekend alone, bitcoin dominance shows a directional move by the largest crypto asset reminiscent of classic bull cycles.
“Every bitcoin bull market has started with an increase in BTC dominance (like every bear market),” noted market commentator Tedtalksmacro on March 15.
An accompanying chart showed that such dominance “spikes” tend to precede significant trend shifts in BTC price action.
“Ball market or bubble?” Tedtalks macro queried.
Analyst Hamza, meanwhile, used Wyckoff schemes to show an equally broad “rise” in dominance after months of an “accumulation” phase.
“Expect bitcoin dominance to return soon,” added optimistic bitcoin investor and research analyst Tuur Demeester earlier in the week.
“Smart contracts, data protection, high-speed transactions, assets issued: after 14 years of maturation, everything is built on Satoshi’s granite foundation. Bitcoin is an open standard for all – the Internet of Money.” Bitcoin Market Cap Dominance 1-Day Candle Chart. Source: TradingView
Bitcoin narrative goes “from bearish to bullish”
As recent events continue to buoy bitcoin bulls after an already impressive start to the year, general sentiment on future performance is starting to turn positive after a dismal bear market.
Related: Bitcoin returns to $25,000 as Credit Suisse bailout precedes EU rate hike
Among the shifts in perspective is that of trading firm DecenTrader, which described the narrative surrounding Bitcoin as “turning bullish” in a fresh market update on March 16
“It’s been a long, cold winter for bitcoin and crypto. However, recent events have helped push the near-term price higher and most importantly shifted the narrative from bearish to bullish,” Miffy summarized.
Of particular interest is $21,800 should a retracement set in, with DecenTrader eyeing $30,000 as a potential upside target.
“In the short term, shorts have been squeezed, late longs have been penalized and for now the price is resting below the 200WMA. If the price needs to break down to generate enough momentum to take the next leg to $30,000, the 1D support at $21,800 is a clear target. But for now, 4H support is holding up well at $23,900,” Miffy concluded.
“Importantly, however, we have seen a major narrative shift for Bitcoin with a clear departure from traditional markets, which continue to struggle due to their economic woes and banking explosions. We could well see outside interest returning to Bitcoin as its price continues to rise and its use case becomes clearer as the traditional banking system continues to implode.” BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView
According to data from Cointelegraph Markets Pro and TradingView, BTC/USD was trading around $24,900 at the time of writing.
The views, thoughts, and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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