Recently Bitcoin’s market dominance reached 60%, indicating a major change in market dynamics and a reversal of trends that have shaped the industry for years. Bitcoin has once again taken the lead after a protracted altcoin season, during which investors had a more optimistic view of ALT’s than of Bitcoin.
This has happened at a time when altcoins keep losing value on their BTC pairs even though the price of Bitcoin has increased in USD terms mostly due to its own upward movement. It wasn’t an easy road to get to this 60 percent dominance level because Bitcoin encountered several obstacles. The altcoins’ stronghold started to wane as Bitcoin’s recent surge allowed it to surpass numerous smaller coins in performance. Although the price of altcoins did rise, this was mostly due to Bitcoin’s gains.
As a result, many altcoins have been unable to maintain their momentum and have been declining in comparison to BTC since March when Bitcoin set new highs. According to the chart analysis, the price of Bitcoin recently reversed from the $70,000 mark, failing to hold onto its position above this crucial level. This decline illustrates the selling pressure that Bitcoin experiences at higher levels, but it does not necessarily portend a breakdown of the cryptocurrency’s overall bullish trend.
The $67,000, $64,000 and $62,000 key support levels are worth keeping an eye on because they might act as stabilizing points for Bitcoin if it keeps retracting. In order to maintain its bullish momentum and possibly advance higher, Bitcoin must recover and hold above $70,000.
The market is impacted broadly by Bitcoin’s current dominance. Altcoins are likely to continue to struggle on their BTC pairs as long as Bitcoin is strong. Because of this dominance cycle, it appears that Bitcoin is concentrating capital, making riskier altcoin wagers less alluring. The dominance trend suggests that Bitcoin will continue to dominate altcoin performance until it is able to establish a stable base close to its recent highs, which could give altcoins a chance to recover on their BTC pairs.
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