In the depths of the recession, Bitcoin was set free by Satoshi Nakamoto; it spread like wildfire among the cypherpunks and darknet individuals, eventually moving to the community of nerds and curious people who saw a massive opportunity to make quick money with it. We have finally come to a point where institutions and governments are also stepping in to get a taste of Bitcoin and all the perks attached to it.
We’ve come a long way from darknet days, but Bitcoin is still being used widely as a speculative asset and is famous for its volatility, causing a couple of thousand dollar fluctuations in a matter of minutes. During the high tide of 2017, Bitcoin hit all-time highs, so did altcoins, more so than Bitcoin, at least in terms of the price change, which made a lot of people overnight millionaires and billionaires.
People have been longing for the taste of the “good ol’ days” when altcoins will go to the moon, to show off their shiny Lambos and other materialistic riches. These days might be approaching quicker than expected and could be just around the corner.
Altcoins typically started pumping after the Bitcoin dominance started to drop between April and July 2017. The price of almost all altcoins increased at this point by an exponential level. Bitcoin dominance for Bitcoin dropped below 70% in July 2017 and has not been above it since then.
As seen in the chart above, Bitcoin dominance has caught up with the massive parabolic price rise; this has led the altcoins to nosedive against BTC. The dominance, as suggested by Josh Rager, a Twitter user and a crypto trader, will hit resistance at 70% causing it to cool off, which will provide altcoins with a leeway to climb to new heights.
“$BTC dominance climbing at 65% Bitcoin’s dominance hasn’t been above 70% since July 2017 & see this as a definite area w/ possible resistance Majority of altcoins can continue to retest support until BTC dominance drops (which could happen near these levels) so pay attention”