Bitcoin dominance approaches 50% as research comes to a ‘bullish’ narrative flip
Bitcoin (BTC) accounts for more of the total value of all cryptocurrencies than at any time since June 2022.
In the latest impact of this week’s surge above $26,000, data from TradingView shows Bitcoin market cap dominance nearing 46% – the highest in nine months.
New dominance “spike” suggests trend changes to come
Up almost 3% since the weekend alone, Bitcoin dominance shows a trendsetting move by the largest crypto asset reminiscent of classic bull cycles.
“Every Bitcoin bull market has begun with an increase in BTC dominance (like all bear markets),” market commentator Tedtalksmacro noted on 15 March.
An accompanying chart showed that such dominance “spikes” tend to precede significant trend shifts in BTC price action.
“Bull Market or Echo Bubble?” Tedtalksmacro asked.
Analyst Hamza, meanwhile, used Wyckoff charts to reveal an equally wide “wave” in dominance after months of an “accumulation phase”.
#Bitcoin dominance on a full wave as expected using the wyckoff accumulation scheme. pic.twitter.com/nxrPMGqKcZ
— Hamza (@Itsdehamza) March 16, 2023
“Expect Bitcoin dominance to return soon,” optimistic Bitcoin investor and research analyst Tuur Demeester added earlier in the week.
“Smart contracts, privacy, high-speed transactions, issued assets: After 14 years of maturation, everything is built on Satoshi’s granite foundation. Bitcoin is an open standard for everyone – the internet of money.”
Bitcoin Narrative Goes ‘From Bearish to Bullish’
With recent events further fueling Bitcoin bulls after an already impressive start to the year, overall sentiment on future performance is gradually turning positive after a gloomy bear market.
Related: Bitcoin returns to $25,000 as Credit Suisse bailout precedes EU rate hike
Among the changes in perspective is trading firm DecenTrader, which described the “narrative” surrounding Bitcoin as “turning bullish” in a recent market update on March 16.
“It’s been a long, cold winter for Bitcoin and crypto. However, recent events have helped to throw off price in the short term, and most importantly have shifted the narrative from bearish to bullish,” contributor Miffy summarized.
Of particular interest is $21,800, should a retracement begin, with DecenTrader eyeing $30,000 as a potential upside target.
“In the near term, shorts have been squeezed, late-longs punished, and right now price is resting below the 200WMA. If price needs to fall to generate enough momentum to take the next leg up to $30,000, the 1D support at $21,800 is a clear target . But for now, 4H support is holding steady at $23,900,” Miffy concluded.
“Importantly, we have seen a major narrative shift for Bitcoin with a clear break from traditional markets that continue to struggle due to their financial woes and bank implosions. We may well see outside interest return to Bitcoin if the price rises further and the use case becomes clearer as the traditional banking system continues to implode.”
BTC/USD was trading around $24,900 at the time of writing, according to data from Cointelegraph Markets Pro and TradingView.
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
