Cryptocurrency markets are witnessing a continued rise led by Bitcoin, which keeps many investors happy. During this period, according to many crypto investors, a clear ascending triangle is forming on the Bitcoin dominance chart, indicating a potential increase in Bitcoin’s market share. However, some argue that the trend will move in the opposite direction.
What’s Happening on the Bitcoin Front?
Crypto investor and founder of Into The Cryptoverse, Benjamin Cowen, alerted his 810,700 followers in a March 27 post that the Bitcoin dominance train is about to leave the station.
An ascending triangle pattern on a chart develops when the price consolidates between an upward trend line support and a horizontal resistance trend line. On March 27, crypto investor Beanie told his 194,800 followers that Bitcoin’s dominance, a measure of Bitcoin’s share of the total crypto market value, has made a significant comeback.
Beanie argued that Bitcoin’s dominance typically increases during bear markets because crypto-native investors prefer its stability and flock to Bitcoin as a safe haven. Despite Bitcoin reaching an all-time high this month, Beanie added that the current trend reflects the 2018 bear market, stating:
“This is quite different from the 2021 bull market, where dominance data significantly dropped from 70% to 40%. It actually parallels the 2018-2019 bear market.”
Prominent Figure Makes Striking Statement
While Bitcoin had an 85% market dominance in March 2017, it fell to an all-time low of 32.45% in January 2018. According to data from the analytics platform CoinStats, Bitcoin’s dominance currently stands at 50.1%.
Not every investor agrees with this view. Some argue that Bitcoin’s market share appears to be decreasing in the long run from a macro perspective. Crypto investor Zero Ika told his 43,500 followers that Bitcoin’s dominance is actually on a long-term downward trend:
“Considering the logarithmic chart, we can clearly see that BTC D. is in a long-term downward trend when we look at the bigger picture.”
