Bitcoin charts suggest the ‘dominance train’ is coming, traders say

The NFT Unicorn 5c2f4207-7a98-4c2d-a1d8-c54b5474968c Bitcoin charts suggest the ‘dominance train’ is coming, traders say Crypto News

A clear ascending triangle is forming on the Bitcoin dominance chart, signaling a potential surge in Bitcoin’s (BTC) market share, according to several crypto traders. Some, however, argue it’s going to go the other way. 

“The BTC dominance train is about to leave the station,” crypto trader and Into The Cryptoverse founder Benjamin Cowen declared to his 810,700 followers in a March 27 X post.

Since September, Cowen claims Bitcoin’s market cap dominance has been in an ascending triangle pattern. Source: Benjamin Cowen/X

An ascending triangle pattern on a chart develops when the price consolidates between an upward trendline support and a horizontal resistance trendline.

Bitcoin’s dominance — measuring Bitcoin’s share of the total crypto market capitalization — “is coming back in a big way,” crypto trader “Beanie” on X told his 194,800 followers on March 27.

Beanie suggested Bitcoin’s dominance usually grows in bear markets as crypto-native investors flock to it as a safe haven, preferring its stability over more risky and speculative digital assets.

Despite Bitcoin hitting an all-time high this month, Beanie added the current trend mirrors the 2018 bear market.

“This is far different from the 2021 bull market where dominance fell considerably from 70% to 40%. It actually parallels the 2018-2019 bear market,” they said.

Bitcoin held an 85% market dominance in March 2017, but by January 2018, it plummeted to an all-time low of 32.45%.

Bitcoin dominance is currently sitting at 50.1%, according to CoinStats data.

Related: Cathie Wood’s Bitcoin ETF hits daily inflow record as BTC retests $72K

Not every trader agrees with the sentiment. Some hold that Bitcoin’s market share seems to be decreasing in the long term from a macro perspective.

Crypto trader Zero Ika told his 43,500 X followers that Bitcoin’s dominance is actually in a “long-term downtrend.”

“If we take a look at the whole picture considering the logarithmic chart, we can clearly see that BTC D. is in a long-term downtrend.”

The NFT Unicorn e82c0c73-e24b-4f63-9e63-4c0692289b25 Bitcoin charts suggest the ‘dominance train’ is coming, traders say Crypto News
BTC dominance chart on TradingView. Source: Zero Ika/X

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Source: Cointelegraph