As its price soars, Bitcoin’s popularity soars alongside it, reaching a new all-time high of 49%. But the RSI suggests a change may be on the way.
Bitcoin (BTC) has been at the forefront of the cryptocurrency market for some time now, but its dominance has recently reached new heights. How does this newfound preeminence compare to its previous performance and that of other cryptocurrencies over the course of the past few months?
The remarkable rise of Bitcoin’s market dominance has recently become the topic of an online debate. The market cap of Bitcoin (BTC) is far larger than that of any other cryptocurrency.
As was pointed out in the conversation, BTC’s level of domination is unprecedented at the present time.
The historical pattern of BTC’s dominance on CoinMarketCap shows that it has been moving in this high range regularly for a long time, with this recent peak hitting a high point not seen in several months.
CoinMarketCap reports that Bitcoin now accounts for over 49% of the cryptocurrency market. This percentage is rapidly approaching the 50% threshold.
At the time of this discussion, the Bitcoin trading volume chart also showed a recent decline. More than 40% of normal trading volume has been lost, and the asset’s market cap has decreased marginally as a result.
Bitcoin’s meteoric rise to prominence is partly attributable to the currency’s price rise, especially the sudden spike it witnessed on October 16.
There was a price increase of more than 5% that day, but since then it has been steadily falling. At the time of writing, one bitcoin was worth around $28,400, down less than 1% from its previous value.
The Relative Strength Index (RSI) also rose above 60, indicating a strong bullish trend for Bitcoin.
However, the RSI reading now suggested that BTC might be dropping in price soon. It is expected that BTC’s share of the cryptocurrency market’s total capitalization will shrink as a result of this price drop.