Bitcoin
As Bitcoin dominance surges, here’s a look at the factors behind the rise
Bitcoin’s dominance skyrockets, hitting an all-time high at 49%, bolstered by a remarkable price spike. But, as RSI signals, could a shift be on the horizon?
- Bitcoin dominance rises to over 49%.
- 24-hour volume drops by over 40% as the price remains in the $28,000 region.
Bitcoin [BTC] has long held its position as the leading cryptocurrency, but it has recently achieved an all-time high in dominance. How does this increased dominance stack up against its performance in previous months and in comparison, to other cryptocurrencies?
Read Bitcoin (BTC) Price Prediction 2023-24
Bitcoin dominance increases
A recent online discussion brought attention to the notable resurgence in Bitcoin’s market dominance. This dominance pertains to BTC’s market capitalization in relation to the total capitalization of all other cryptocurrencies.
As the discussion highlighted, BTC’s current dominance is now at an all-time high.
Upon examining the historical trajectory of BTC’s dominance on CoinMarketCap, it became evident that it had been consistently trending in this elevated range for a considerable period before reaching this new peak, marking a high point not seen in several months.
According to data from CoinMarketCap, Bitcoin’s dominance currently stands at over 49%, closely approaching the 50% mark of the entire cryptocurrency market.
Furthermore, analysis of the Bitcoin chart revealed a recent decrease in trading volume at the time of this discussion. The trading volume has declined by more than 40%, and the asset’s market capitalization also experienced a slight decrease.
Examining the BTC price trend in light of the rise in dominance
The significant surge in Bitcoin’s dominance can be largely attributed to its price increase, particularly the sharp spike it experienced around 16 October.
On that day, its price rose by over 5%, but it has been on a declining trend ever since. At the time of this report, BTC was trading at approximately $28,400, with a decrease of less than 1% in its value.
Source: TradingView
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Additionally, it’s worth noting that the Relative Strength Index (RSI) soared above 60, indicating that Bitcoin was in a strong bullish trend.
However, the current RSI position also hinted at the possibility of a forthcoming price decline for BTC. With this anticipated price drop, the market capitalization is expected to decrease further, leading to a reduction in BTC’s dominance in the cryptocurrency market.
