251010 [BTC.D] Bitcoin Dominance

<Bitcoin Dominance Explained>

This represents the percentage share of Bitcoin within the entire cryptocurrency market.

• It is an essential metric for understanding the overall movement of capital, including trends, bullish/bearish sentiment, and fund flows between Bitcoin and altcoins.

<Current Bitcoin Dominance Status>

Historically, during bull markets, Bitcoin dominance typically rises in tandem with Bitcoin's price increase.

• Near peak levels, when Bitcoin consolidates, Bitcoin dominance often drops significantly, heralding an altcoin bull run.

• Ultimately, the typical structure involves a synchronised movement of Bitcoin rising + dominance rising first, followed by an altcoin bull run. However, until now, the tendency has often been the opposite [Red Box].

• Nevertheless, during this recent decline, the direction has synchronised somewhat with Bitcoin, resembling the pattern of past bull markets [Blue Box].

• Assuming the recent Bitcoin rise marked a peak, it is not inconceivable that a bull market for altcoins could follow Bitcoin's bull run within a short timeframe.

<Future Outlook>

However, considering the current market momentum and conditions,

• a further Bitcoin rally + dominance increase may precede Bitcoin reaching a new high, with dominance rising to around 60-63%. 

• Bitcoin then consolidates at a level slightly below its peak, concurrently with the commencement of an altcoin bull run.

• This bull run is expected to conclude with Bitcoin's dominance falling to the 38–42% range.

#Bitcoindominance #BTCdominance #BTC.D