Bitcoin dominance and the test of the bull market 🔥

27 апр. 2023 г.

In the crypto world, the dominance of Bitcoin is of high importance. It shows the weight of BTC to other altcoins. It is this indicator that is now the main one for determining the vector of market movement or the potential start of the alt season.

💰 Bitcoin dominance has been jumping in the range of 40-49% for the past 2 years.
That is, we have a certain flat on the chart.
Let's analyze the history of what is happening in the market during one or another indicator of Bitcoin dominance over these last 2 years.

Look at the picture.
In 3 out of 4 cases, when dominance rose to 50%, this led to a collapse of the crypto market.

BUT it is important to consider that we are analyzing the situation in 2021-2022.
At that time, there was a bear market and if now is really a bull market, then Bitcoin dominance will finally go above 50%.
Or it will start to decline, then liquidity will flow from Bitcoin to alts, as it was in July 2022.

It turns out, based on the analysis of domination, we have 2 scenarios:
1. We continue to be inside the flat and in the near future we will see a collapse and a decrease in dominance. After strong growth of alts.
2. We break through the sideways up, Bitcoin slowly rises or falls, and the alts start to shoot.

Be careful in this market, buddy 😉