Bitcoin dominance in the crypto market is on the rise, threatening the rally of altcoins. The dominance rate has reached its highest level since April 2021, currently standing at 51.68%. This increase follows a bullish breakout in June, marking the end of a range play between 38% and 48%. Technical analysis suggests that this trend is likely to continue, reversing the decline seen during the crypto bull market of March-April 2021.
Investors Shift Focus from Altcoins to Bitcoin
Investors are shifting their focus from altcoins back to bitcoin, leading to a decline in BTC’s dominance rate. Experts predict that bitcoin will outperform altcoins, further reversing the gains made by altcoins in the first half of 2021. The next resistance level to watch is the Fibonacci resistance at 60.17%.
Bitcoin Dominance Trend Reversal
The current rise in bitcoin dominance indicates a trend reversal from the decline seen during the crypto bull market of March-April 2021. This reversal is likely due to investors recognizing the potential of bitcoin and reallocating their investments from altcoins back to the leading cryptocurrency.
Technical Analysis Supports Bitcoin Dominance Growth
Technical analysis of the market supports the notion that bitcoin dominance will continue to grow. The bullish breakout in June marked the end of range play between 38% and 48%, and the current dominance rate of 51.68% suggests that this trend is likely to continue. If the dominance rate surpasses the Fibonacci resistance at 60.17%, it could further solidify the growth of bitcoin dominance in the market.
Impact on Altcoins’ Rally
The increasing bitcoin dominance poses a threat to the rally of altcoins, as investors shift their focus and resources back to bitcoin. This shift could lead to a decline in the value of altcoins and potentially reverse the gains they made in the first half of 2021. Altcoin investors should keep a close eye on the bitcoin dominance rate and adjust their strategies accordingly.
Altcoins’ Performance and Market Sentiment
The performance of altcoins is heavily influenced by the market sentiment towards bitcoin. As bitcoin dominance continues to rise, it could lead to a bearish sentiment for altcoins, causing their value to decline. Investors should be cautious when investing in altcoins during this period of increasing bitcoin dominance.
Conclusion
In conclusion, the rising bitcoin dominance rate in the crypto market poses a threat to the rally of altcoins. Investors are shifting their focus from altcoins back to bitcoin, leading to a decline in BTC’s dominance rate. The current trend, supported by technical analysis, suggests that bitcoin will outperform altcoins and further reverse the gains made by altcoins in the first half of 2021. The next resistance level to watch is the Fibonacci resistance at 60.17%. Investors should monitor the bitcoin dominance rate closely and adjust their investment strategies accordingly to protect their assets and capitalize on potential market opportunities.
