Bitcoin’s dominance relative to other cryptocurrencies has broken through key resistance levels this week.
Bitcoin’s dominance – a measure of its total market capitalization versus the total crypto market cap shows that it’s now just below 51.5%.
This is the highest level of dominance for Bitcoin since April 2021, as noted by popular crypto trader ChiefraT on Twitter. The rise in Bitcoin’s dominance indicates growing strength for the flagship cryptocurrency, while altcoins like Ethereum, XRP, and Cardano struggle.
“This chart shows why altcoins are suffering today!” says ChiefraT.
Over the past week, Bitcoin is up 7% and trading around $28,600. Meanwhile, Ethereum has barely moved, gaining just 1% over the period and trading around $1,560. Other major altcoins like XRP, ADA, and DOGE have seen similarly muted price action compared to Bitcoin.
ChiefraT pointed out that Bitcoin’s dominance is now above key weekly resistance levels that have capped its relative strength since 2021. Breaking through this resistance is bullish for Bitcoin and indicates investor preferences shifting back towards the leading crypto asset after a period of increased interest in altcoins.
The chart shared by ChiefraT shows how Bitcoin’s growing slice of the total crypto market cap led to weakened performance for altcoins over the past week. As Bitcoin gathers momentum, traders seem to be losing interest in higher-risk plays among alternative cryptocurrencies.
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy thetrades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
eToro offers staking for certain popular cryptocurrencies like ETH, ADA, XTZ etc.
CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com