Bitcoin dominance nears 50% as research hails ‘bullish’ narrative flip

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Bit­coin (BTC) accounts for more of the total val­ue of all cryp­tocur­ren­cies than at any time since June 2022.

In the lat­est knock-on effect from this week’s surge above $26,000, data from Trad­ingView shows that Bit­coin mar­ket cap dom­i­nance is near­ing 46% — its high­est in nine months.

New dominance “spike” hints at trend change to come

Up almost 3% since the week­end alone, Bit­coin dom­i­nance shows a trend-set­ting move by the largest cryp­to asset rem­i­nis­cent of clas­sic bull cycles.

“Every Bit­coin bull mar­ket has com­menced with a spike in BTC dom­i­nance (as has every bear mar­ket),” mar­kets com­men­ta­tor Tedtalks­macro not­ed on March 15.

An accom­pa­ny­ing chart showed that such dom­i­nance “spikes” tend to pre­cede sig­nif­i­cant trend shifts in BTC price action.

“Bull Mar­ket or Echo Bub­ble?” Tedtalks­macro queried.

Ana­lyst Hamza mean­while used Wyck­off schemat­ics to reveal an equal­ly broad “surge” in dom­i­nance after months of an “accu­mu­la­tion” phase.

“Expect for Bit­coin dom­i­nance to come roar­ing back 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 it’s all being built on Satoshi’s gran­ite foun­da­tion. Bit­coin is an open stan­dard for all—the inter­net of money.”

Bit­coin mar­ket cap dom­i­nance 1‑day can­dle chart. Source: TradingView

Bitcoin narrative goes “from bearish to bullish”

With recent events fur­ther buoy­ing Bit­coin bulls after an already impres­sive start to the year, over­all opin­ions on future per­for­mance are grad­u­al­ly flip­ping pos­i­tive after a grim bear market.

Relat­ed: Bit­coin returns to $25K as Cred­it Suisse bailout pre­cedes EU rate hike move

Among the shifts in per­spec­tive is that of trad­ing firm Decen­Trad­er, which described the “nar­ra­tive” around Bit­coin as “turn­ing bull­ish” in a fresh mar­ket update on March 16 

“It has been a long, cold win­ter for Bit­coin and cryp­to. How­ev­er, recent events have helped to cat­a­pult near-term price, and impor­tant­ly have shift­ed the nar­ra­tive from bear­ish to bull­ish,” con­trib­u­tor Miffy summarized.

Of par­tic­u­lar inter­est is $21,800, should a retrace­ment kick in, with Decen­Trad­er eye­ing $30,000 as a poten­tial upside target.

“In the near-term the shorts have been squeezed, late-longs pun­ished, and right now price is rest­ing under­neath the 200WMA. If price does need to drop down 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 well at $23,900,” Miffy concluded. 

“Impor­tant­ly though, we have seen a major nar­ra­tive shift for Bit­coin with a clear break­away from tra­di­tion­al mar­kets which con­tin­ue to strug­gle due to their eco­nom­ic trou­bles and bank blow-ups. We may well see out­side inter­est return to Bit­coin if its price ris­es fur­ther and its use case becomes clear­er as the tra­di­tion­al bank­ing sys­tem con­tin­ues to implode.”

BTC/USD 1‑hour can­dle chart (Bit­stamp). Source: TradingView

BTC/USD trad­ed at around $24,900 at the time of writ­ing, accord­ing to data from Coin­tele­graph Mar­kets Pro and TradingView.

The views, thoughts and opin­ions expressed here are the authors’ alone and do not nec­es­sar­i­ly reflect or rep­re­sent the views and opin­ions of Cointelegraph. 

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