In 2019, Bitcoin dominance has been an indicator of where prices are headed for Bitcoin and altcoins. Its rise or drop has affected Bitcoin and altcoins in quite different ways. When Bitcoin dominance surges, its price also soars.
Altcoins have on the other hand fallen when dominance is high and soared when Bitcoin dominance has dropped. In the last few days, Bitcoin dominance has dropped to around 65%. This has been an indication that altcoins could soon start rising. For Bitcoin, this could see bears tighten their grip.
In September, Bitcoin was testing its highest dominance levels reaching 71%. At the same time, Bitcoin was trading well above $10K and looking set to break its year high of $13K.
As Bitcoin has continued to slip downwards, dominance has continued to fall with many investors ditching it. For altcoins, when Bitcoin was holding strong above $10K, a majority were struggling to stay above key supports, when Bitcoin slipped, they broke above.
The stage is now beginning to look similar. Bitcoin has slipped in dominance in the last few days which could usher in a bearish phase and push altcoins to surge.
Ethereum And XRP First In Line To Soar
A spectacular rally by altcoins has long been due according to holders. After the altseason witnessed early in the year, notably, when Bitcoin was struggling both in price and dominance, altcoins have failed to post similarly impressive numbers.
This is despite the bulls trying to push prices above $200 before the end of the year and possibly hitting its year high of $345. XRP, on the other hand, continues struggling to rally and stay above $0.30 with its year high of $0.50 nowhere in sight.
For XRP, several positive announcements over the year have failed to inspire a rally, something that has seen frustrations rise among investors. For Ethereum, a major upgrade is expected before the end of the year and the bulls are hoping this can trigger a major breakout.