Leading and following a bear market the dominance of bitcoin in the market increases. What this means is that ALTCOINS are bleeding more and being liquidated into bitcoin, stable coins or cash.
During the peak of the 2017 cycle the dominance of BTC reached 35% and reached 40% this 2021 cycle. The similarities in these two data points can suggest a pathway for the next cycle.
Bitcoin will continue to increase in its dominance value until a market bottom is formed. I expect this to be around 55% region. This area is of confluence and when the bottom formed in 2018 this dominance was oscillating in this region.
I would then expect an accumulation phase leading to a decline in the dominance of bitcoin as people now start liquidating from BTC in to alt pairs and generally cash flow increases in alt accumulation.
Thereafter, we have the confirmation of the bull market at bitcoin leads the rally and I can see valuations as high of 60% of bitcoin dominance. Notice this isn't the same value as 2018 highs which were more closer to 70%. I think presence of larger caps such as ETH will influence this value.
After peaking, begin the alt season where you will see if the altcoin you brought during the bear market has rewarded you.
During the peak of the 2017 cycle the dominance of BTC reached 35% and reached 40% this 2021 cycle. The similarities in these two data points can suggest a pathway for the next cycle.
Bitcoin will continue to increase in its dominance value until a market bottom is formed. I expect this to be around 55% region. This area is of confluence and when the bottom formed in 2018 this dominance was oscillating in this region.
I would then expect an accumulation phase leading to a decline in the dominance of bitcoin as people now start liquidating from BTC in to alt pairs and generally cash flow increases in alt accumulation.
Thereafter, we have the confirmation of the bull market at bitcoin leads the rally and I can see valuations as high of 60% of bitcoin dominance. Notice this isn't the same value as 2018 highs which were more closer to 70%. I think presence of larger caps such as ETH will influence this value.
After peaking, begin the alt season where you will see if the altcoin you brought during the bear market has rewarded you.