Could Bitcoin's (Btc) Market Dominance Be Hindering Altcoin Rally?

Cryptocurrency trader "Beanie" noted that the current state of Bitcoin's dominance chart resembles the 2018-2019 bear market.

According to a group of cryptocurrency traders, there is a clear ascending triangle formation visible in Bitcoin's market dominance chart, indicating that Bitcoin's market share may increase. However, some argue to the contrary, suggesting that Bitcoin dominance will decrease.

Cryptocurrency trader and founder of Into The Cryptoverse, Benjamin Cowen, stated in a post to his 810,700 followers on X platform on March 27th that "the BTC dominance train is about to leave the station."

The formation of an ascending triangle on a chart occurs when prices are squeezed between an upward support trendline and a horizontal resistance line.

"Beanie," a popular crypto analyst on the X platform, stated to his 194,800 followers on March 27th that Bitcoin's market dominance is "making a strong comeback."

According to Beanie, Bitcoin dominance tends to rise in bear markets because investors in the crypto market prefer stability over riskier and speculative assets, thus turning to Bitcoin as a safe haven.

Despite reaching an all-time high this month, Beanie noted that the current trend resembles the 2018 bear market.

"This is very different from the 2021 bull market where dominance dropped significantly from 70% to 40%. It actually resembles the 2018-2019 bear market," he explained.

In March 2017, Bitcoin had an 85% market dominance, but it dropped to a record low of 32.45% in January 2018.

According to CoinStats, Bitcoin dominance is currently at 50.1%.

However, not every analyst shares this view. Some argue that Bitcoin's market share appears to have decreased in the long term from a macro perspective.

Crypto trader Zero Ika told his 43,500 X followers that Bitcoin dominance is "in a long-term downtrend."

"Looking at the logarithmic chart, we can clearly see that BTC's dominance is in a long-term downtrend," he said.