The cryptocurrency market has been in a bit of a dip in the last few days, making cryptocurrencies to lose significantly. This has affected most cryptocurrencies especially the top ten. Bitcoin dominance, however, seems to be increasing in the opposite direction to the altcoins.
According to a cryptocurrency trader and investor Josh Rager, this dominance gives a clue into why the altcoins are bleeding at this time. He added that altcoins may not see any price gains as the dominance continues to rise.
Bitcoin dominance has reduced since 2018 and was expected to further reduce in 2019 and an ‘alt season’ was expected as well. However, the tables seem to be turning and the dominance is going back to the December highs during the Bitcoin December low, according to Rager. Currently, at 58.05%, April 27 dominance analytics by Tradingview shows the dominance may be rising to 61% in the next few months.
Market dominance refers to the strength of an asset, a product or service in relation to competitors. For cryptocurrencies such as Bitcoin, this is determined by several factors including the user base, government regulation and the level of acceptance the cryptocurrency is getting. The growing dominance for Bitcoin is, therefore, an indication that the market is favoring it and the future is bright for the asset.
The Price of Bitcoin, however, is a bit stagnant as the market is currently not favorable. While many analysts and traders have agreed that Bitcoin is about to see another bull run with new highs, the current market is not looking like it.
Some analysts have also predicted that the asset will have to experience another downward trend towards $4,000 before a real bull run can commence. It is uncertain right which of the two predictions will actually come to pass, but it may take some time for the market to really move from where it currently is whether upward or downward.
Bitcoin is currently trading at $5,244 according to Coin Market Cap and has managed to not go below $5,200. Will it crash to $4,200 the next time it moves or ascends towards $6,000?