Bitcoin's Market Dominance Reaches 60%

Recently, Bitcoin's market dominance surged to 60%, indicating a significant shift in market dynamics and a reversal of long-standing trends in the industry. After a prolonged altcoin season, where interest in altcoins surpassed that of Bitcoin, the leading cryptocurrency has reclaimed its prominence.

This shift occurs as altcoins continue to lose value against BTC pairs, despite Bitcoin’s price climbing in USD terms. Achieving this 60% dominance wasn't straightforward, as Bitcoin faced various challenges. As Bitcoin surged, its performance outpaced many smaller coins, even though the altcoin prices rose primarily due to Bitcoin's gains.

Since March, following Bitcoin's new highs, many altcoins have struggled to maintain momentum, declining in comparison to BTC. Recent chart analysis shows a reversal from the crucial $70,000 mark, indicating strong selling pressure at higher levels. However, this does not necessarily signal a breakdown of Bitcoin’s overall bullish trend.

Key support levels to watch are $67,000, $64,000, and $62,000, as these may provide stabilization for Bitcoin if it continues to retract. To sustain its bullish momentum and potentially rise higher, Bitcoin must recover and remain above $70,000.

Bitcoin's current dominance significantly impacts the market. Altcoins are likely to continue struggling against BTC as long as Bitcoin remains strong. This dominance cycle reflects Bitcoin's capital concentration, making riskier altcoin investments less appealing. Until Bitcoin can establish a stable base near its recent highs, it seems poised to continue dominating altcoin performance, which might allow for a possible recovery of altcoins on their BTC pairs.

This article was originally published on U.Today