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Bitcoin dominance The cryptocurrency market is dangerously close to a long -term resistance level which has triggered the major upsurge in the past. This resistance level is highlighted on the weekly Btc.d candlestick timeframe chart.
Each time the dominance taps this descending trendline, it struggles to break and eventually tumbles. In particular, the dominance of bitcoin is now back around this resistance, and A Technical Outlook posted The tradingview crashed up to 40% on the platform within the next months.
Bitcoin dominance can crash up to 40%: Altcoin good for the market
The dynamics behind the dominance of bitcoin differs from this cycle compared to the previous ones. This is because the dominance has increased on a large scale since the beginning of this cycle, Leaving very little space for Altcoin season Like many people have expected. At the time of writing, the market dominance of bitcoin is sitting at a high level of 63.2%annually, according to which Data from coinmarketcap.
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However, an interesting technical analysis suggests that bitcoin dominance is now tapping on a resistance trendline that puts it at risk of crashing below 40%by 34.9%. If that pattern is once again correct, the Crypto market can get closer to a phase where atherium, XRP, and other altcoin power gain strength, with many hopes the next ultrason.
A Drop in bitcoin dominance The altcoins will be positively boded, as it indicates that the altcoin market is performing better than bitcoin. This will be characterized by a widespread increase in prices of major altcoins, such as Ethereum, Solana and XRP. In such a case, token, so -called dino coins such as Etharium, XRP, Cardano, Chanlink, BNB, and Litcoin, which have survived many market cycles, are likely to attract quick attention from retail traders.
However, unlike the previous bull run, when only a few hundred ultachoins were present and the most attention was paid, the crypto market is now saturated with thousands of ultcoin. After large market-cap-ultcoin, rotation may move towards more niche areas. Sectors such as Artificial Intelligence (AI), Real World Assets (RWA), and DEFI can also attract attention, but within these categories, even within these categories, a strong filtering process will be implemented to select the ultcoin that will perform better.
Can Bitcoin dominance be actually crashing up to 40%?
Bitcoin dominance is not a new phenomenon that crashes up to 40%, given how 2017 and 2021 bull markets surfaced. However, such an incident is happening again, becoming increasingly difficult, Keeping in mind the situation of bitcoin Spot bitcoin in the investment world today through ETF. These funds in these ETFs are closed for a longer period, meaning that rejection in BTC dominance can automatically result in large -scale liquidity as a result of large -scale liquidity in the market, as seen in 2021 and 2017.
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Even if the dominance of bitcoin crashes to 40% and Ushers in a new altcoin cycleMany altcoins will eventually end in the cruel drawdown. Near the previous market cycles, most altcoins have lost more than 90%, once the bullish feeling fades and takes back the capital flow to stabechoin.
Specially displayed image from Dall.E, chart from traudingView.com
