The comedown of the past nine months has disappeared during this week’s bank-crisis-inspired Bitcoin price surge.
Bitcoin (BTC) accounts for more of the total value of all cryptocurrencies than at any time since June 2022.
In the latest knock-on effect from this week’s surge above $26,000, data from TradingView shows that Bitcoin market cap dominance is nearing 46% — its highest in nine months.
New dominance “spike” hints at trend change to come
Up almost 3% since the weekend alone, Bitcoin dominance shows a trend-setting move by the largest crypto asset reminiscent of classic bull cycles.
“Every Bitcoin bull market has commenced with a spike in BTC dominance (as has every bear market),” markets commentator Tedtalksmacro noted on March 15.
An accompanying chart showed that such dominance “spikes” tend to precede significant trend shifts in BTC price action.
“Bull Market or Echo Bubble?” Tedtalksmacro queried.
Analyst Hamza meanwhile used Wyckoff schematics to reveal an equally broad “surge” in dominance after months of an “accumulation” phase.
#Bitcoin dominance on a full surge as expected using wyckoff accumulation schematic. https://t.co/QqIzvIh0rW pic.twitter.com/nxrPMGqKcZ
— Hamza (@Itsdehamza) March 16, 2023
“Expect for Bitcoin dominance to come roaring back soon,” optimistic Bitcoin investor and research analyst Tuur Demeester added earlier in the week.
“Smart contracts, privacy, high speed transactions, issued assets: after 14 years of maturation it’s all being built on Satoshi’s granite foundation. Bitcoin is an open standard for all—the internet of money.”
Bitcoin narrative goes “from bearish to bullish”
With recent events further buoying Bitcoin bulls after an already impressive start to the year, overall opinions on future performance are gradually flipping positive after a grim bear market.
Related: Bitcoin returns to $25K as Credit Suisse bailout precedes EU rate hike move
Among the shifts in perspective is that of trading firm DecenTrader, which described the “narrative” around Bitcoin as “turning bullish” in a fresh market update on March 16
“It has been a long, cold winter for Bitcoin and crypto. However, recent events have helped to catapult near-term price, and importantly have shifted the narrative from bearish to bullish,” contributor Miffy summarized.
Of particular interest is $21,800, should a retracement kick in, with DecenTrader eyeing $30,000 as a potential upside target.
“In the near-term the shorts have been squeezed, late-longs punished, and right now price is resting underneath the 200WMA. If price does need to drop down to generate enough momentum to take the next leg up to $30,000, the 1D support at $21,800 is a clear target. But for now 4H support is holding well at $23,900,” Miffy concluded.
“Importantly though, we have seen a major narrative shift for Bitcoin with a clear breakaway from traditional markets which continue to struggle due to their economic troubles and bank blow-ups. We may well see outside interest return to Bitcoin if its price rises further and its use case becomes clearer as the traditional banking system continues to implode.”
BTC/USD traded at around $24,900 at the time of writing, according to data from Cointelegraph Markets Pro and TradingView.
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