Bitcoin's Market Dominance: Ascending Triangle Indicates Surge, Some Predict Downward Trend
Summary:
Several crypto experts predict an increase in Bitcoin's market dominance due to a forming ascending triangle pattern on its chart. However, some traders believe its market share will diminish in the long term. Trader Benjamin Cowen says Bitcoin's market cap superiority has been in an upward trend since September, while trader "Beanie" suggests that Bitcoin's dominance usually increases in bear markets as investors see it as a safe haven. Notably, Bitcoin's market dominance is currently around 50.1%.
An evident rising triangle pattern on Bitcoin's supremacy chart hints at a possible upshot in the cryptocurrency's market standing, as surmised by a number of crypto enthusiasts. However, there are those who believe the tide may turn in the opposite direction. "The train of BTC dominance is all set to depart," professed Benjamin Cowen, a crypto trader and the founder of Into The Cryptoverse, to his large follower base of 810,700 on March 27. According to Cowen, Bitcoin's dominion over the market has been on an upward curve in a triangular pattern since last September. An upward triangle chart only emerges when price consolidation is caught between a rising trendline of support and horizontal trendline resistance. Bitcoin's stronghold over the total market capitalization of cryptocurrencies is "set for a significant comeback", stated the crypto trader "Beanie" to his 194,800 followers a day ago. In Beanie's view, bear markets often spark an increase in Bitcoin's market dominance as it is seen as a safer haven by crypto-focused investors, who prefer its steadiness over the speculative nature of other digital assets. Contrary to its recent all-time high, Beanie observed that the current trend reflects the bearish market of 2018. He added, "This situation starkly differs from the bull market of 2021 when the dominance came down significantly from 70% to 40%. This is identical to the 2018-2019 bear market." Bitcoin boasted a market dominance of 85% in March 2017, yet by January 2018, it had slumped to an all-time low of 32.45%. Presently, its market domination sits at 50.1%, as per CoinStats data. Not all traders concur with this viewpoint. Some state that from a broad perspective, it seems Bitcoin's share of the market is gradually diminishing over time. Crypto trader Zero Ika shared with his 43,500 followers that Bitcoin's supremacy is in reality, on a "long-term downtrend." He stated, "When we consider the comprehensive picture from the logarithmic chart, it is blatantly evident that Bitcoin's dominance is on a long-lasting downturn.
Published At
3/28/2024 9:11:59 AM
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