Key Points:
- BTC dominance near 50% after price spike to over $28K
- Dominance at multi-month highs but may drop if BTC corrects
- RSI showed bullish momentum but now signals potential decline
Surge Attributed To Recent BTC Price Spike
Bitcoin has achieved an all-time high in its market dominance compared to other cryptocurrencies. Its share of the total crypto market cap recently surpassed 49% after a notable BTC price rally.
According to CoinMarketCap data, Bitcoin’s current dominance has been trending at elevated levels for some time before reaching this new peak. This underscores its strength relative to altcoins.
At the time of writing, BTC dominance stood at over 49%, approaching the 50% threshold. This gives Bitcoin command of nearly half the entire crypto market.
The surge in dominance coincided with a sharp 5% Bitcoin price spike on October 16th. However, BTC has declined steadily since then, now trading around $28,400.
When Bitcoin’s price initially jumped, trading volumes were also elevated. But volume has now dropped over 40% from that period as dominance remains high. Market capitalization has also slid slightly from the peak.
What’s Next For Bitcoin Dominance?
The Relative Strength Index (RSI) indicator for Bitcoin recently exceeded 60, signaling strong bullish momentum. However, the current RSI position hints that a price drop could be ahead.
If Bitcoin’s value declines from here, its market cap is expected to follow suit. This would likely cause its dominance over other cryptos to decrease from its current all-time high.
The recent spike in dominance was largely driven by Bitcoin’s price run-up. A correction could bring its share of the crypto market back down and provide opportunities for altcoins to gain ground.
But for now, Bitcoin remains firmly in the driver’s seat, cementing its position as the undisputed leader of the cryptocurrency space.
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Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.
