Bitcoin (BTC) Dominance Shows Unexpected Resilience

Typically, Bitcoin dominance rises during bearish phases, holds steady as markets transition to bullish trends, and then declines sharply when bullish conditions are established.

However, recent observations suggest a departure from this pattern.

According to crypto analyst Flow, Bitcoin dominance remains high at around 54.3%, despite the end of a bearish market period. Historically, a recovery would usually prompt a decline in Bitcoin dominance, but this hasn’t occurred. The current dominance level is close to its peak for the year, showing little sign of the expected drop.

This cycle continues to be an unusual one in terms of Bitcoin vs Altcoins dominance. In the past, a normal sequence in the crypto market followed almost a mechanical procedure:

1. Bitcoin’s dominance rises during bear markets.
2. It continues to increase in the early stages of a… pic.twitter.com/PA9cBsBOXB

— flow (@tradetheflow_) September 3, 2024

Flow offers two potential explanations for this anomaly: one is that the market cycle is behaving unusually, not adhering to traditional patterns; the other is that a true bull run has not yet begun, which could explain the sustained dominance.

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Looking ahead, Flow advises caution for those hoping for a broad altcoin rally. He predicts that any future bull market will likely be led by a few major cryptocurrencies rather than a widespread altcoin surge.

Investors should carefully evaluate individual assets rather than relying on a general increase in altcoin values.

Alexander Stefanov