Bitcoin Dominance a Year Before Halving
Hello, TradingView community! Today, let's dive into Bitcoin Dominance.
Bitcoin Dominance has been making waves in recent months, hovering above the crucial 50% level. This level has historically been significant, often leading to reversals and breakouts. We saw its impact in 2018, and it reaffirmed its importance in 2021 by consistently bouncing back from this threshold.
Interestingly, there's a peculiar relationship between Bitcoin Halving and Bitcoin Dominance. Just before the third halving in Bitcoin's history, the dominance chart showed consolidation below 60% resistance. Fast forward to the present, we're approximately 11 months away from the next halving on May 20, 2024, and the price has been consolidating below 47%-50%. It appears we're witnessing a breakout, with the next target likely being a dominance level of 60%. It's possible that we'll reach this milestone just before the fourth halving.
The Bitcoin dominance chart serves as a valuable tool for assessing Bitcoin's market position compared to other cryptocurrencies. A higher dominance percentage indicates that Bitcoin's market capitalization surpasses that of other cryptocurrencies, highlighting its prominent standing in the overall crypto market. Conversely, a lower dominance percentage suggests that altcoins are gaining popularity and capturing a larger market share.
When Bitcoin dominance drops, it often signals the beginning of an altcoin bull run, with altcoins experiencing significant growth. Conversely, when Bitcoin dominance rises, it typically indicates a period of decline or correction in the altcoin market.
Feel free to share your thoughts and join the conversation!
Bitcoin Dominance has been making waves in recent months, hovering above the crucial 50% level. This level has historically been significant, often leading to reversals and breakouts. We saw its impact in 2018, and it reaffirmed its importance in 2021 by consistently bouncing back from this threshold.
Interestingly, there's a peculiar relationship between Bitcoin Halving and Bitcoin Dominance. Just before the third halving in Bitcoin's history, the dominance chart showed consolidation below 60% resistance. Fast forward to the present, we're approximately 11 months away from the next halving on May 20, 2024, and the price has been consolidating below 47%-50%. It appears we're witnessing a breakout, with the next target likely being a dominance level of 60%. It's possible that we'll reach this milestone just before the fourth halving.
The Bitcoin dominance chart serves as a valuable tool for assessing Bitcoin's market position compared to other cryptocurrencies. A higher dominance percentage indicates that Bitcoin's market capitalization surpasses that of other cryptocurrencies, highlighting its prominent standing in the overall crypto market. Conversely, a lower dominance percentage suggests that altcoins are gaining popularity and capturing a larger market share.
When Bitcoin dominance drops, it often signals the beginning of an altcoin bull run, with altcoins experiencing significant growth. Conversely, when Bitcoin dominance rises, it typically indicates a period of decline or correction in the altcoin market.
Feel free to share your thoughts and join the conversation!
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