Bitcoin dominance continues to increase – with weak overall market capitalization
Bitcoin dominance continues to increase - with weak overall market capitalization
The overall market remains weak over the holidays. An attempt to break through the $ 200 billion total market cap failed for the time being. On the positive side, however, it should be noted that no new low has been reached and the overall market remains above the $ 170 billion mark.
Market capitalization in no man’s land
Overall market capitalization continues to struggle despite the increasing dominance of Bitcoin and is currently $ 184 billion. The attempt to cross the $ 200 billion threshold failed on December 23. Since then, the overall market has been on the decline again and threatens to fall back towards the $ 173 billion mark.
The bulls are still holding back on sustainable cryptocurrency purchases. As long as the overall market can hold above $ 173 billion, there are at least chances for the bull camp to try again to end 2019 in a conciliatory manner.
However, hope for higher prices should not hide the fact that the bears continue to hold the scepter. Should the $ 170 billion breakout break through, retesting the annual low at $ 166 billion is a matter of time. Further targets on the bottom are $ 155 billion and $ 133 billion. The key currency Bitcoin (BTC) will again dictate the direction of the overall market. In order for the bulls to breathe again, a daily closing price of the overall market above the $ 205 billion is required.
Consideration of the Altcoin chart vs. Bitcoin
The weakness of the altcoins is particularly evident when looking at the chart of the altcoin / bitcoin pairs versus BTC. The Altcoin currencies benefit and partly from increases in bitcoin, but lose disproportionately in value if the key currency is weak. The important green resistance zone in the chart is moving further and further away. Currently, the green horizontal support can still hold, but if it is broken down, the goal on the bottom continues to be the red horizontal line. If the overall market continues to be weak, it is ultimately also conceivable that the gray support zone will start up. The likelihood of a bearish winter for the altcoins continues to increase. The break of the green zone on the chart that is holding the ground continues to cast its shadows. As long as the altcoins don’t make it,
Bitcoin dominance again over 70 percent
The dominance of the leading currency has recently increased further and is currently quoted at 70.33 percent. The dominance has thus already reached the target zone of 70.32 and 70.88 percent mentioned in the previous week. If this resistance area breaks, the mark is activated as a target by 72 percentage points. The bending up Bollinger Bands are currently showing the way up and make higher goals likely. Another test of the annual high at 72.90 percent is realistic.
However, if the dominance of the leading currency falls below 69.53 percent, a possible target for the super trend from the daily chart would be 68.90 percent. At 68.01 percent at the latest, it is decided whether the make-or-break level will start again at 66.62 percent. Only if this level breaks sustainably could the trend be reversed and the 65 percent mark be activated as a target. The sustained strength of the dominance of the leading currency is currently visibly weighing on the overall market, the altcoin pairs are still struggling to recover sustainably from the strong sales of the previous weeks.
Bitcoin dominance continues to grow
With its increasing dominance in the overall market, Bitcoin tried to break out several times over the holidays and to break the $ 7,600 mark. However, attempts by the bulls to move the price towards $ 7,800 were promptly followed by a counterattack by the bears, which pushed the price back into the $ 7,100 range. So far, attempts by the bull camp to sustainably detach the key currency from the lows of the previous week have failed. Accordingly, the majority of the altcoins are currently performing poorly.
As long as the total market cap isn’t pushed through the resistance area of $ 200 billion again with momentum, the risks will continue to prevail. The bull camp is currently too indecisive to be able to provide the market with further positive impulses. Even if individual altcoins have repeatedly recorded remarkable increases, they are usually only of short duration. Only the key currency Bitcoin, with a jump above the $ 7,800 shortly before the end of the year, could provide some relief for the market as a whole and create new confidence among investors.