Bitcoin Dominance 18% Off ATH Suggests A Surge Could See BTC To $20k
We love historical trends. Historical trends let us analyse how the markets may perform in the future. This sort of goes for everything really. Lessons can be learned from history in all walks of life, therefore using history to predict the future of crypto is not on wise, itâs often quite accurate too.
Of course, this is not investment advice and therefore, has to be considered as speculation, but, all things considered, if we take a look at the history of Bitcoin dominance and compare it to today, thereâs no reason Bitcoin canât hit $20,000.00 again soon.
Now wouldnât that be fantastic.
Data from Coinmarketcap.com
If we look at this chart (which can also be found here, we can see the trend of Bitcoin dominance. The spike around December 2017 came at the same time as the market surge, that saw Bitcoin shoot up towards its all time high, just shy of $20,000.00. Since this time, we have not seen Bitcoin dominance at a higher level than it is today. Considering this then, as we are seeing Bitcoin dominance continue to rise, we could start to argue that a repeat of the trend could happen here.
Again, referring to the chart sits just below 50% between September 2017 and November 2017. Likewise, Bitcoin dominance sits just below 50% between the end of June 2018 and throughout July. At the time of writing, Bitcoin dominance is at 47.6%.
At its peak, Bitcoin dominance reached 65.54% (after dominance declined from a number of years at over 75%, prior to the rise in altcoins during March 2017).
Now, we are less than 20% away from Bitcoin reaching that high for dominance once again. If history is to go by, then we can expect a surge in the value of Bitcoin to happen sooner, rather than later.
As Bitcoins dominance rises, the likelihood of a bull run increases too. If dominance breaches 50% and moves up towards 60%, a bull run could very well pull Bitcoin up to values exceeding $15,000.00. Most importantly though, with Bitcoin holding such a tight grip over the markets, we can also expect to see the rest of the markets follow along too.
Whilst this isnât investment advice, the trends and figures are pointing towards a surge, Bitcoin dominance could very well be the key to this.