Citing in-house CoinNess analyst Jins, the dominance of Bitcoin flags a reversion during the downtime. Dating back its inception, BTC dominance seldom dipped below 80%; until March 2017, the ICO boost, along with altcoins created, snatched a considerable share away from BTC. If 80% is set as a benchmark, a meaningful pattern could be further revealed.
December 26th, 2015, and hence, BTC dominance was hiking, and hit a record high at 91.26% on the 28th. The trendline was in alignment with its price reaching a ceiling at that time.
The same story recurred again on January 4th, 2017, the dominance reached a recent high at 87%, followed by a 30% decrease in BTC’s paper value from $1,148 to below $800. So, it’s safe to conclude that investors can forecast the recent ceiling by the reading of BTC dominance.
To put into context of the current market. Throughout October 2017 till now, BTC shoulders massive pressure to break out the 60%, and yet it has rallied to 60.82% from 59.4% within the past 24 hours, which is a solid milestone, to say the least. It also speaks sick chances that the price is about to turn a corner. And thus, investors shall be wary of the mounting pressure.
In addition to BTC dominance, BTC futures may cast a huge impact on the price as well. Bitcoin derivatives provider LedgerX was just given a green light by the U.S. CFTC to settle futures in real Bitcoin on June 25, targeting retail or institutional investors. Bakkt’s and LedgerX' physically-delivered BTC futures are likely to serve as an anchor to fierce swings.
All in all, BTC dominance, a less frequently changed indicator, comes as handy to predict a recent price ceiling. Whether BTC dominance stands firmly above 60% or makes a surge to thrust 80% remains a mystery to unfold. If the indicator stays near 60%, then the price rally draws while other major coins endeavor to catch up.
Follow us on Social Media:
- Twitter: https://twitter.com/CoinNessCom
- Telegram:https://t.me/coinnessofficial
- CoinNess App: https://twitter.com/CoinNessCom