Bitcoin Dominance Converges to All-Time Resistance at 64%: What Traders Need to Know
Bitcoin Dominance Approaches 2020 High, Following Cyclical Market Trends
From late 2018 to 2021, Bitcoin dominance had a contrary trend to its bearish trend, which was an upward trend with lines in green in the graph. During this time, dominance trended upwards above 71% in late 2020. This level, marked by a red horizontal line, is a significant historical resistance.
From 2021 to 2022, Bitcoin dominance declined once more, setting up a declining triangle pattern after it broke below 50%. This consolidation is defined with the use of black trendlines, signaling a growing interest in altcoins. By 2023, the bullish rally pushed dominance beyond 57.68%, aided by green horizontal support. Dominance now is almost at 64%, which is almost at its 2020 high.
Rekt Capital has analyzed the patterns of Bitcoin dominance and emphasized the cyclicality of the data. According to him, the recovery phases of the metric are signs of greater confidence in Bitcoin in cycles within the market.
Seeing the Cyclical Pattern of Bitcoin's Price Movement
The price movement of Bitcoin also follows cyclical patterns that consist of a growth and consolidation phase. Technical analyst Vivek described such cycles as containing the "Boring Zone" and the "Banana Zone."
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