Post the mid-week crash in which Bitcoin plunged below the $30k mark, the asset seems to have settled down somewhat. It overcame most losses and even spiked to just shy of $35,000 the following day, but it did maintain momentum above $34k. Despite losing over a grand since then, its dominance over the market recorded a significant surge.
In fact, as per CoinMarketCap, BTC’s dominance owing to total market capitalization when compared to other cryptocurrencies stood at around 45%.
Here’s the significance of Bitcoin’s rising dominance,
The perception toward #Ethereum here on #Twitter is at its lowest levels since June, 2018. Fear has gripped the #crypto markets clearly, and $BTC being viewed as the 'safe haven' as its dominance has grown could cause #altcoins to actually be sneaky good. https://t.co/v7moAptXDb pic.twitter.com/cjuseI3FGW
— Santiment (@santimentfeed) June 24, 2021
Concerning the said aspect, the Dutch trader projected a significant “bounce up” in the world’s largest crypto token’s price dominance within the market.
— Michaël van de Poppe (@CryptoMichNL) June 23, 2021
Now, even though the Bitcoin Dominance rate (BTC.D) saw an incline compared to its price action last week,
“Overall the very important level is the 50% point which has been an area of action in the previous period (when zoomed out).”
Irrespective of Bitcoin’s surge in its dominance charts, altcoins still hold more than a 50% share in the market. As pointed out by numerous analysts in the past, Bitcoin and altcoins share a certain degree of a positive correlation i.e. influence of Bitcoin’s price on altcoins. Using the same narrative, Santiment recently tweeted,
As #Bitcoin has dominated headlines and markets during this past week's continued market-wide decline, many #altcoins are appearing to show #bullish divergences. The higher the green bar, the higher the ratio of non-deposit activity is vs. deposit activity. pic.twitter.com/BldEGz876l
— Santiment (@santimentfeed) June 25, 2021
Now talking about altcoins, Cardano has been trending for a while now. Its recent developments around implementing smart contracts functionality certainly helped the buzz around the flagship coin.
Here’s a small comparison between Cardano, Ethereum, and Bitcoin to further understand the reason behind the hype.
According to Poppe, Cardano is one of the alts that can be expected to shoot up this year. In fact, according to the analyst, Cardano saw a ‘U-shaped‘ inclination as it witnessed a bounceback from its previous price action.
As the trader was quick to point out, the market’s fifth-largest token bounced back from the 3500 sats-mark. Furthermore, zooming out a bit,
“It’s in a bullish structure, previous high is still holding support, making higher lows higher highs. This signifies a bullish continuation.”
However, here’s what Cardano needs to achieve to continue this momentum,
“Cardano breaking back up in which it should be flipping the 3800 sats level if it wants bullish continuation.”
Now irrespective of how the market’s altcoins or Bitcoin surge, the overall crypto-market remains in the red zone (around -1.2% in 24 hours).
To escape further decline, here’s what the market has to do –
“Total market capitalization for crypto has to break through $1.425 trillion and then the next area can be tested at $1.75 trillion. Support levels are clear in the chart too.”