Crypto markets are abuzz with speculation as a clear ascending triangle formation emerges on the Bitcoin dominance chart. Typically viewed as a bullish indicator, this pattern has ignited discussions among traders regarding the potential implications for Bitcoin’s market share.
Mixed sentiment among traders
While some traders anticipate a surge in Bitcoin’s dominance, others hold contrasting views, suggesting a possible downtrend in the long term.
Proponents of a bullish market sentiment point to the ascending triangle forming on the Bitcoin dominance chart. Into The Cryptoverse’s founder, Benjamin Cowen expressed confidence in Bitcoin’s resurgence, declaring to his substantial following that the “BTC dominance train is about to leave the station.” Similarly, crypto trader “Beanie” highlighted the historical correlation between Bitcoin’s dominance and bear markets, suggesting a return to prominence for the leading cryptocurrency.
Beanie emphasized that Bitcoin’s dominance typically grows during bear markets as investors seek its stability amidst market uncertainty. Drawing parallels to the 2018 bear market, they noted that despite Bitcoin reaching all-time highs, the current trend resembles the conditions of the aforementioned downturn.
Bearish perspective: Bitcoin dominance declining
Then again, other traders like Zero Ika question the bullish sentiment as they believe Bitcoin’s dominance to be, in a real sense, in a long-term downward curve. Ika is saying that cryptocurrency’s dominance has been falling physically, which shows that investors are now losing interest in leading cryptocurrencies since they have many other alternatives.
The significance of BTC share in the overall crypto space has been going through ups and downs throughout crypto history. By 85% (March 2017) that was controlling the market, to a low level of 32.45% (January 2018), Bitcoin had to experience a lot of mild volatility. Currently, Bitcoin leads the market with a 50.1% dominance, as indicated by the data obtained from CoinStats, which implies that investors are still divided and some hold a pessimistic view.
The argument over a Bitcoin hegemony expresses a deeper aggro of apprehension ensuing the cryptocurrency context. While proponents model an uptick in BTC dominance as they rub their hands eagerly to be on the crypto giant’s tailcoats, the bears’ views indicate digital assets other than Bitcoin could break out.
