In the early hours today, the star cryptocurrency, Bitcoin, fluctuated between $21,000 and $20,000 before settling down around $20,700. Before this downward move, the asset had even managed to trade above the crucial mark of $21,200 and hit a high of $21,469.
At the time of writing, Bitcoin has lost 2.32% in the last 24hrs and is now trading at $20,750.
In addition to this, Bitcoin’s dominance has dropped despite the bullish momentum. This Bitcoin dominance is an important indicator for the crypto industry as it lets the traders know the possible price movement for altcoins in particular.
Impact Of Falling Bitcoin Dominance
As of November 5, Bitcoin dominance had dropped by 38.67%, accounting for a four-year low marking. This data was last recorded on June 10, 2018. Hence, according to historical data, whenever Bitcoin dominance plunges, altcoin season emerges.
Bitcoin dominance is an indicator which gives out the ratio of currency’s market capitalization and the overall crypto market capitalization. It points towards overall market performance, which is, in turn, influencing trading strategies.
Usually, when the Bitcoin price drops and the dominance surge, it indicates the altcoin bear market. However, with the present scenario where both are sliding down, it could possibly mean bearish action for the overall crypto market.