Author: Ciaran Lyons, CoinTelegraph; Compiler: Tao Zhu, Golden Finance
Several cryptocurrency traders said that a clear ascending triangle is forming on the Bitcoin dominance chart, indicating thatBitcoin’s market share could surge. However, some people think things will go in the opposite direction.
“The BTC dominance train is about to leave the station,” cryptocurrency trader and Into The Cryptoverse founder Benjamin Cowen declared to his 810,700 followers in a March 27 post.
Cowen claimed that Bitcoin’s market capitalization dominance has been in an ascending triangle pattern since September. Source: Benjamin Cowen/X
When price consolidates between an ascending trendline support and a horizontal resistance trendline, an ascending triangle pattern forms on the chart.
On March 27, cryptocurrency trader “Beanie” on X told his 194,800 followers, Bitcoin’s dominance, measured as its share of the total cryptocurrency market capitalization, “is coming back in a big way.”
Beanie said, Bitcoin dominance typically increases in bear markets , as native cryptocurrency investors flock to Bitcoin as a safe haven, preferring its stability over riskier and more speculative digital assets.
Although Bitcoin hit all-time highs this month, < /span>But Beanie added that Current trends reflect the 2018 bear market.
“This is very different from the 2021 bull market, when dominance dropped significantly from 70% to 40%. It actually parallels the 2018-2019 bear market ," they said.
In March 2017, Bitcoin held 85% market dominance, but by January 2018, Bitcoin dominance plummeted to an all-time low of 32.45%.
Bitcoin dominance currently stands at 50.1%, according to CoinStats.
Not all traders agree with this view. Some argue that From a macro perspective, Bitcoin's market share appears to be declining in the long term.
Cryptocurrency trader Zero Ika tells his 43,500 X followers that bit The coin’s dominance is actually in a “long-term downward trend.”
“If we look at the overall situation from a logarithmic chart, we can clearly see that BTC D. is in a long-term downtrend.”
< img src="https://img.jinse.cn/7200465_watermarknone.png" title="7200465" alt="YBVgRhqOum9fbBn8L48BCqe8kljLDw2HevUS2RpX.jpeg">
BTC dominance chart on TradingView. Source: Zero Ika/X
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