- Bitcoin (BTC) on hand to cross the 70% dominance mark before 2020 as the price stabilizes above $7,000 USD.
- Technical indicators signal a push to $8,000 USD as altcoins keep losing against the top cryptocurrency.
Bitcoin (BTC) has had a rocky week or so, as the price dropped to $6,400 USD before unexpectedly shooting back above $7,000 USD to trade at $7,190 across major exchanges. The large upswing in BTC’s price has seen the market capitalization of the Satoshi-built digital coin soar to 68.7%, as at time of writing as ETH, XRP, LTC and other top altcoins lost ground in the past 24 hours. Currently at $61.7 billion dollars, out of a total market cap of $190 billion USD, alt season seems a distant reality, at least until 2020.
Bitcoin set to breach 70% dominance before 2020
With a number of analysts predicting a clear view in Bitcoin price direction will be revealed in January, the current market tilts towards a bullish trend. The market capitalization of Bitcoin stands at 128.3 billion, representing 68.32% of the total market capitalization with the steady rise in the past 3 months giving Bitcoiners hope to cross the 70% mark in the coming days as 2019 closes.
The spike in market dominance in the past 48 hours cumulated with increased volatility on BTC’s price as the coin outpaced most of the top cryptos – it spiked by 10% during the period as ETH, XRP and Bitcoin Cash registered lower gains in the period.
Break down move in the price of ether relative to bitcoin – watch bitcoin dominance index! pic.twitter.com/UWQdKIq8rp
— skew (@skewdotcom) December 19, 2019
Ethereum’s weak performance against BTC in the past week or so is causing the rising dominance levels of BTC. According to Skew Markets, Ethereum price in relation to Bitcoin’s price has plummeted to 1.85% as the second largest crypto extended its lose period to the fourth day running. This represents the lowest point ETH/BTC has traded at since September, currently trading at 0.0177 BTC per ETH.
Can BTC reach 70% dominance in 2020?
While the 70% dominance level has been breached as recently as September 5th, BTC has failed to hold the level and 2020 may give way for the coin to achieve a long run above the 70% mark. Here are some reasons why Bitcoin may cross above the major dominance level in 2020.
BTC/USD targets $8,000 as altcoins lag behind
The ambiguity on which direction BTC will take in the coming days seems to be slowly revealing itself as the coin tested the middle Bollinger Band on the daily charts. The squeeze on the bands signals an oncoming major move on the pair. Can BTC hit $8,000 USD in early next year?
Well according to Rekt Capital, a crypto trader, the price of BTC/USD is expected to drop towards the $6,500 USD region before any move to $8,000 is plausible.
What a rebound from the cycle low#Bitcoin rallied straight into the rejection area, developing a series of Lower Highs against it
— Rekt Capital (@rektcapital) December 19, 2019
After failing to break the resistance of the bearish wedge, BTC/USD is expected to drop towards the $6,500 support level as the rising volumes signal interest in the market. A cross above the wedge resistance will awaken the Bitcoin bulls who are expected to push the coin the coin towards major resistance at $7,900 USD and possibly test October highs at $10,400 USD.
A failing altcoin market?
While BTC’s bullish sentiments offer weight on why the pioneer coin will surpass 70% dominance, the death of the altcoin market offers convincing evidence. First, through 2019, Bitcoin has been dictating the market (as it has done before only harder) with bullish trends on the crypto outpacing the altcoins every single time. Is an altseason possible really if BTC keeps rising faster?
Notwithstanding, through 2020, a number of tokens will lose their value and with investors hooked on Bitcoin, a percentage of these investors are expected to select the top coin as their go-to investors. This shows the movement of value from altcoins to Bitcoin. This will cause a significant soar in Bitcoin’s dominance.
How dominant can BTC get in 2020? Share your thoughts below.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist. Follow him at @lujanodera.