- Bitcoin dominance in the crypto market is nearing the 50% ratio.
- An upsurge in Bitcoin dominance would imply a downward trend for the altcoin market.
- The developing trend is an opportunity for traders to choose the right altcoins for the next bull market.
Bitcoin dominance in the crypto market is nearing the 50% ratio, and experts think it could have significant implications for altcoins. If the historical, alternating trend between Bitcoin and altcoins upholds, an upsurge in Bitcoin dominance would imply a downward trend for the altcoin market.
According to a crypto trader identified on Twitter as Evca Wolf, the developing trend is an opportunity for traders to choose the right altcoins for the next bull market.
At the time of writing, TradingView data shows that Bitcoin dominance stood at 49.15%, closing above a horizontal channel that spans to May 2021. After forming a classic bullish candle on the weekly chart, the entity entered a region with no significant resistance until nearly 60% dominance.
Bitcoin’s market capitalization as of writing time was $482,904,692,824, while the price of BTC was $24,891. The largest altcoin, Ethereum, traded at $1,635, with a market cap of $196,572,121,428. Ethereum’s market dominance met resistance on the weekly chart, in contrast to Bitcoin’s dominance, and recorded a classic bearish candle.
As the leader of the altcoins, the bearish potential in Ethereum’s dominance suggests the altcoin market may be in for a significant drop. In addition, Ethereum’s technical indicators exhibit bearish signals. A low RSI at 29.7 and a negative CCI at -194.5 suggest a potential price decline soon.
Many top altcoins declined in the past 24 hours registering significant price drops. Cardano (ADA) trades at $0.256 after losing 6.7% in the period, and Polygon (MATIC) lost 7.04% of its value to trade at $0.607.
Other top altcoins with significant losses include Litecoin (LTC), which lost 6.20% to trade at $72.89, and Polkadot (DOT) traded at $4.34 after losing 6.68% in the last 24 hours.
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