Bitcoin Dominance Hits 2 Year High But Could be Facing Resistance
This year has been all about Bitcoin. Even the handful of altcoins that have made good gains are now losing them as BTC crushed them all with its increasing market share.
Bitcoin Dominance at 2 Year High
According to charts on Tradingview.com BTC dominance topped 72.5 percent today. Its recent move back into five figures has kept the digital asset within its range bound channel but the altcoins have not shared in similar momentum.
BTC dominance – Tradingview.com
The last time Bitcoin dominance was this high was back in July 2017 when it was priced at just $2,450 with a market capitalization of $900 million. This was a spike, however, so the previous sustained period of BTC supremacy was further back in May 2017 when it fell from over 80 percent.
According to analysts it could be facing resistance here though as there are a number of bearish signals appearing on the chart according to ‘alan masters’ who posted his TA on Tradingview.
“We have low and decreasing volume.
Bearish divergence showing up on the MACD and RSI.
Strong resistance ahead.
Our main scenario is marked with arrows on the chart. The situation can easily change if the next resistance at 74.84 is broken with good strength and volume.”
Conversely some analysts have plotted the clear uptrend, predicting further gains as the altcoins get wiped out.
BTC DOMINANCE LONGER TIMEFRAME for CRYPTOCAP:BTC.D by ahmedali10 #BTC https://t.co/JChIEo3T25 pic.twitter.com/cFA93i2NGT
— BitcoinAgile (@bitcoinagile) September 3, 2019
Fellow trader Josh Rager shares this bullish opinion claiming that fundamentals such as the Bakkt launch could keep BTC dominance up there for a while yet.
$BTC dominance monthly chart looks like the end to the bottom of a market
Looks as if BTC.D capitulated, "v" bottomed followed by a strong recovery
At 72% now, highest since July 2017
With Bakkt coming, we may not see a strong pullback in BTC market dominance anytime soon pic.twitter.com/lhaA6OWom3
— Josh Rager (@Josh_Rager) September 3, 2019
Last time BTC moved up into five figures and rallied to a new 2019 high, the altcoins were pulled up with it. This time around however they appear to be breaking down as Bitcoin continues to consolidate.
Total crypto market capitalization is currently at $265 billion which is up $15 billion, or 6 percent on the day. This is virtually all BTC’s work though as the altcoins have not shared in similar gains.
Ethereum has eked out a tiny gain of 3.5 percent in a push towards $180 which, at the time of writing, could not be sustained. XRP has barely moved but Bitcoin Cash has added 5 percent as it closes on $300 once again.
Binance Coin has also grabbed 5 percent to reach $23 but it too is down substantially from recent highs. There has been a couple of percent movement for the rest of the top ten but in general the altcoins remain on the floor.
There are only three double digit gainers in the entire crypto top ten at the moment and they are all low cap altcoins which will likely dump tomorrow.
Image from Shutterstock
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