This article discusses Bitcoin's dominance in the cryptocurrency market, analyzing its past cycles and current trends.
A Historical Look at Bitcoin Dominance Cycles
Bitcoin dominance has experienced evident cycles of rise, decline, and recovery since 2017. Experts highlight specific points where market preferences oscillated between altcoins and Bitcoin.
Bitcoin Dominance Approaches 2020 High
From late 2018 to 2021, Bitcoin dominance had an upward trend, exceeding 71% in late 2020, marking significant historical resistance. By 2023, dominance rose again to 64%, nearing previous highs.
The Cyclical Pattern of Bitcoin's Price Movement
Bitcoin's price movement also follows cyclical patterns involving growth and consolidation phases. A technical analyst describes these cycles as the 'Boring Zone' and 'Banana Zone', indicating low-volatility periods followed by price surges.
Analyzing Bitcoin's dominance cycles and price movements provides insights into current market trends, allowing traders to better understand market sentiments.
