Bitcoin (BTC) represents more of the total value of all cryptocurrencies than at any time since June 2022.
In the latest knock-on effect of this week’s rise above $26,000, data from TradingView shows Bitcoin’s market cap dominance is nearing 46%, its highest level in nine months.
The new “peak” of dominance hints at a trend reversal to come
Up almost 3% since the weekend alone, Bitcoin’s dominance shows a trend-setting move by the largest crypto asset reminiscent of classic bull cycles.
“Every Bitcoin bull market has started with a spike in BTC dominance (as have all bear markets),” markets commentator Tedtalksmacro noted March 15th.
An accompanying chart showed that such dominance “spikes” tend to precede significant trend changes in BTC price action.
“Bull market or echo bubble?” Tedtalksmacro asked.
Meanwhile, analyst Hamza used Wyckoff schematics to reveal a similarly large “surge” in dominance after months of a “buildup” phase.
#Bitcoin dominance in a full wave as expected using the wyckoff accumulation scheme. https://t.co/QqIzvIh0rW pic.twitter.com/nxrPMGqKcZ
—Hamza (@Itsdehamza) March 16, 2023
“Expect Bitcoin’s dominance to roar back again soon,” bullish Bitcoin investor and research analyst Tuur Demeester aggregate 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 foundations. Bitcoin is an open standard for all: Internet of money”.
Bitcoin Narrative Goes “Bearish to Bullish”
With recent events driving Bitcoin bulls further after an already impressive start to the year, general views on future performance are gradually turning positive after a bleak bear market.
Related: Bitcoin Returns To $25K As Credit Suisse Bailout Precedes EU Rate Hike Move
Among the changes in perspective is that of the trading firm DecenTrader, which described the “narrative” around Bitcoin as “turning bullish” in a new market update on March 16
“It has been a long, cold winter for Bitcoin and cryptocurrencies. However, recent events have helped catapult the price in the short term and, more importantly, have changed the narrative from bearish to bullish”, summarized the contributor Miffy.
Of particular interest is $21,800, should a pullback occur, with DecenTrader eyeing $30,000 as a potential bullish target.
“In the short term, the shorts have been tight, the late longs punished, and right now the price is below 200WMA. If the price needs to drop to build enough momentum to rally to $30,000, the 1D support at $21,800 is a clear target. But for now 4H support holds well at $23,900,” Miffy concluded.
“However, it is important to note that we have seen a major narrative shift for Bitcoin with a clear break from traditional markets that continue to struggle due to their economic woes and bank explosions. We may see a return of external interest in Bitcoin if its price rises further and its 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.
