Bitcoin markets have been exciting in 2019 as regulation moves forward and sentiment changes from bearish to bullish in 2019. Bitcoin has recently surpassed $11,500 which equates to 200% + gain year to date. As more buyers and sellers enter the markets, many are unfamiliar with the stage Bitcoin is entering. In a recent crypto research report by Visionary Financial, we mentioned Bitcoin “Market Dominance” is important to watch. Market Dominance simply shows how much of the crypto market Bitcoin controls. With the recent rally, Bitcoin is approaching a 70% Market Dominance. This means 70% of the capital in the crypto markets is being deployed into Bitcoin. If we take a look at historical figures, we can see Bitcoin is reaching significant levels to assess price momentum.  

Crypto Technicals Entering Important Stage  

Bitcoin has done extremely well this year, but many altcoins have struggled. Many of these altcoins were projected to have great years, and Bitcoin has completely taken over. For those unfamiliar, the term “altcoin” simply refers to Bitcoins smaller competitors such as Ethereum, XRP and Litecoin. If we take a look at historical values, we can see the difference Bitcoin is making this year. 

1 Year Performance: (Keep in mind this figure will be different than “year to date” returns

Bitcoin: +87%

Ethereum: -41%

XRP: -13.5% 

Bitcoin Cash: -71% 

The Most Important Chart in Crypto Right Now 

As we mentioned above, Bitcoin market dominance has recently surged with the price action. Currently Bitcoin is about to test the 70% market dominance level. This could be a very critical level to determine momentum. As we’ve mentioned in recent research report, Bitcoin tends to outperform as its dominance increases. On the flip side, altcoins tend to outperform when bitcoin loses market dominance. When Bitcoin sells off, that capital tends to be redeployed into altcoins. The last time Bitcoin market dominance breached 70% levels, it was the start of the massive altcoin rally. During this time, you can see Bitcoin dominance was falling, as altcoins such as Ethereum and XRP were gaining massive market share. During the altcoin bull run of 2017, XRP gained +36,000% and Ethereum gained +9,100%. The famous term on social media is “altseason”, referring to this era where altcoins were outperforming as Bitcoin was dropping. Many have been calling for “altseason” for a while, but the fundamentals lacked. In the stage we are currently witnessing, one could argue altseason 2.0 is coming to fruition. 

*Chart Sourced From CoinMarketCap

The next 2-3 weeks in crypto could be very interesting. As Bitcoin approaches the 70% dominance test, many will see this as a long-term sentiment indicator. If Bitcoin can surpass 70% levels, one will argue altcoins will continue to sell off as Bitcoin becomes more powerful. If Bitcoin begins a sharp sell-off with dominance dropping, there is a strong argument that altcoins could rise substantially in value based on historical figures. 

Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the crypto currency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal or accounting advice. This material has been prepared for informational purposes only and is the opinion of the author, and is not intended to provide, and should not be relied on for, investment, tax, legal, accounting advice. You should consult your own investment, tax, legal and accounting advisors before engaging in any transaction. All content published by Visionary Financial is not an endorsement whatsoever. Please also visit our Privacy policy; disclaimer; and terms and conditions page for further information.

You May Also Like
stock investment tips

4 Stock Investment Tips for Beginners

Stock investing is lucrative and great for earning passive income via dividends.…

Grayscale Investment Trust CEO Believes Bitcoin Mining Moving from China to the US

Barry Silbert, the Grayscale CEO, recently said that he believes Bitcoin mining…

Crypto Exchange Huobi Shuts Down US Operations: Mentions The Move Being Temporary

On Monday, the Huobi crypto exchange announced that it had shut down operations in…

Ripple And Coinbase Pushing for Market Integrity with Blockchain Association

The United States’ leading firm, the Blockchain Association has started the Market…

US Treasury Blacklists Crypto Addresses of Chinese Drug Lords

Photo Credit To Dz Techs Via Flickr The Treasury Department blacklisted crypto…

Non-Custodial Nash Crypto Exchange is Designed To Be Hacker-Proof

Hacking of crypto exchanges has become quite prevalent. Even large exchanges that…

Bitcoin Price Could Target $7,500 In Near Term, Senate Passes $2 Trillion Stimulus Package

Bitcoin price has surged the last 7 days posting +25% returns at…
Crypto Marketing

Revolutionizing Finance: Cutting-Edge Crypto Marketing Tactics for the 21st Century

Are you looking to stay ahead of the game in the rapidly…
Crypto Price Weekly Analysis 12/23: BTC, ETH, BNB, ADA

Crypto Price Weekly Analysis 12/2: BTC, ETH, BNB, DOGE, ADA

Cryptocurrency markets have been inching higher ever since the start of this…
The Top Web3 Companies 2023: Pioneers in the Future of the Internet

The Top Web3 Companies 2023: Pioneers in the Future of the Internet

Web3 technology is an exciting and emerging industry that is set to…