Bitcoin’s Market Cap Dominance Hits Critical Resistance, Altcoin Pump Ahead

After scaling to a high of around $29,159 in the past two weeks, Bitcoin bulls have struggled to reach the long-awaited $30k. As a result, investors have begun pulling their money out of Bitcoin’s ecosystem towards the altcoin market.

For instance, Cardano (ADA) traded around $0.393 on Friday, up approximately 3.3 percent in the past 24 hours. Additionally, Hedera (HBAR) and Baby DogeCoin (BABYDOGE) have spiked 6 and 25 percent, respectively, in the past 24 hours.

Bitcoin price, on the other hand, traded around $27,943 on Friday, down approximately 2.6 percent in the past 24 hours. The crypto money flow will move from the Bitcoin market to top altcoins to small-cap alts.

Meanwhile, all eyes are on the Ethereum (ETH) price ahead of the April 12 Shanghai upgrade, enabling validators to withdraw staked ethers.

Closer Look at Bitcoin Dominance

Every time the altcoin market rallies, Bitcoin’s dominance is shaken to lower margins. The 2017 crypto rally, which has been described as the largest crypto bubble, saw Bitcoin’s dominance shaken from above 90 percent to below 50 percent. Ever since Bitcoin’s dominance has held firmly above 39 percent, but analysts forecast it will not be that way for long.

According to a famous Twitter crypto analyst @Cryptowoetoe, the altcoin season will kickstart if Bitcoin’s dominance falls from its current resistance of around 48 percent.

“I see the BTC.D as the main indicator for starting a potential alt season. We are up against a big resistance there so the dominance might come down. Also, ETH is very strong against BTC in lower time frames. Will definitely be looking more into some alts from here,” the analyst stated through a telegram channel group.

The analyst indicated that the Ethereum price has been going up in the lower time frame, which is bullish for altcoins.

Source link