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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@rtonline I think it is the principle of first mention. It has been here before many coins and has built brand
Yes that's right Bitcoin has great power and brand value. But nowadays there are very strong cryptocurrencies such as ETH, BNB, HIVE. Many have strong communities and support. They also host a lot of great projects. And they make the markets more lively and active. Bitcoin is a great investment option and store of value. It is difficult to use it in any other field now.
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@rtonline seems you are in ICT as me. I am a network and security Engineer.I hope to get a remote Job and work from Nigeria
New coins keeps getting added to the trackers daily and many other projects have gone from nothing to top 50, all these feed on bitcoin and ethereum's dominance
The price of BTC are at bullish trend now. We are still expecting it to get upto 65k. But for the price of altcoin, the price of HIVE is coming down but we are still expecting the altcoin to enter in bullish trend again.
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I agree with you that it is a VERY good news for the ecosystem and I would see big Altcoins (the ones you mentioned) follow in the coming weeks.
I just hope some of the shitty/fraud coins in the Top 20 would not benefit from this pump but I know they will... This is hurting me VERY much.
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I can guess the coins you mentioned. Yes, unfortunately, even those who have no projects and infrastructure are pumped. But if not today, they will be garbage in the future.
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