Why Is Bitcoin Dominance (BTC.D) Increasing and What Does It Indicate?
With the start of the 4th quarter of the year, the positive atmosphere in the crypto markets caused the price of Bitcoin, which is in the 1st rank according to the market cap, to increase significantly. The significant increase in institutional and individual investments in Bitcoin this month has resulted in an increase in Bitcoin Dominance (BTC.D) in the crypto market. Earlier this month, BTC.D was 41.8% and is now up to 46.7%.
Recently, cryptocurrencies have become a popular alternative investment option. Due to its popularity and low total supply, many investors prefer Bitcoin. Especially new entrants to the crypto market or investors who make their first investments generally prefer to make their first investment in Bitcoin. In short, many new and old investors see Bitcoin as the most popular alternative investment option and value store. Due to the high price of Bitcoin and the high transaction fees, the areas of use in the crypto market are decreasing day by day. However, it will continue to be the best investment option due to its popularity, low total supply and decreasing circulating supply day by day.
One of the cryptocurrencies most affected by the positive and negative atmosphere in the crypto markets is undoubtedly Bitcoin. Therefore, due to the current positive developments, Bitcoin continues to rise rapidly and Bitcoin Dominance is increasing. When examining the past periods, after Bitcoin started to draw a balanced chart after the rise, the rise of altcoins accelerates and Bitcoin Dominance begins to decrease.
Currently, almost all of the top 10 coins in the crypto market by market cap are in red, while only Bitcoin is in green. This shows that investments in Bitcoin have increased significantly. But in the coming days, things may turn around. If a negative situation does not occur in the crypto markets, even if Bitcoin does not decline, altcoins will start a rapid rise. Although the current positive atmosphere does not positively affect the price of many altcoins, I think that in the coming days, many strong cryptocurrencies, especially Ethereum (ETH), Binance Coin (BNB), HIVE, will close the gap with a rapid rise.
Bitcoin (BTC) is currently trading at $57,079 and is trying to establish support prices around $57,000. To continue higher, it must stay above $57,000 and create support prices. Once it achieves this, it can move higher. There is resistance at $57,100 and $57,500. If rejected, it has support at $56,360. The next most solid support is at $55,120. It looks like it can go higher, according to the current data.
In short, everything has been progressing positively on the Bitcoin side lately and it has been receiving significant investment. This causes its price and dominance to increase. I think that altcoins will make a similar rise after the rise of the Bitcoin price slows down. I think they will go even higher. When we look at the past years, the price of Bitcoin increases first and then the price of altcoins due to the positive atmosphere in the crypto markets.
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