The region is expected to register three major events this week amid market volatility. Given the recent developments in trading, it is possible that the market could become more volatile in the coming months.
Most of the major cryptocurrencies are trading in the red below the $22,000 mark, with bitcoin starting a sharp decline and to prevent further losses, BTC must maintain the price above the $20,000 support. After touching the liquidity zone of $1,800, Ethereum price declined to the $1,600 level.
ETH’s recent price action could see it fall again to $1,300 and below. Amid Bearish Prices, Is Bitcoin Increasing Dominance Over Altcoins?
According to a renowned crypto analyst, Bitcoin (BTC) is about to establish its dominance over other crypto markets. Benjamin Cowen has warned in a new video that the Bitcoin Dominance Chart (BTC.D) could soon rise to more than 50% by the end of the year.
Alt season on the cards?
The BTC dominance graph shows how much of the market capitalization for all cryptocurrencies is made up of bitcoin. A bullish BTC dominance indicates that bitcoin is rising more quickly than other crypto assets, or that altcoins are depreciating as the top cryptocurrency grows.
“If you look at its general direction, it looks like it’s definitely down… Maybe it’s heading towards what we’re looking at. Maybe it’s back [to 58%] and it comes back down [to 40%],
According to Cowen, the rise in bitcoin dominance in the coming months could actually help pave the way for the later season. Over the course of a season, the cryptocurrency has surged strongly as bitcoin consolidates.
“Everyone talks about weather and what not, but to get a real season as we have seen in past bull markets, many times you need a lot of juice that comes already. [Bitcoin] The dominance is relatively high.”