Bitcoin Dominance Hits 2 Year High But Could Soon Face Resistance

As the Bitcoin dominance hits more than 1% overnight, we have all the proof that this year has been all about Bitcoin and its uptick. Even the couple of altcoins which were featured in the altcoin news for their gains are now losing them as BTC crushed them all with its increasing market share.

As the charts on Tradingview.com show, the Bitcoin dominance hits new highs as it topped 72.5% today. Now, it has moved back to $71. The move back into five figures has kept BTC within its range bound channel – and triggered the altcoins too – which did not share a similar momentum, though.

The last time that the Bitcoin dominance hits a level like this and was this high was back in the month of July 2017, when it was priced at $2,450 with a market capitalization of $900 million. This was a spike, which means that the previous sustained period of BTC supremacy was further back in MAy 2017 when it fell from over 80%.

Analysts are sharing their opinions on many best cryptocurrency news sites now. As they said, it could be facing resistance here though as there are many bearish signals appearing on the chart. As Alan Masters, who is a popular analyst on TradingView recently said:

“We have low and decreasing volume.
Bearish divergence showing up on the MACD and RSI.
Strong resistance ahead.
RSI Overbought.
Our main scenario is marked with arrows on the chart. The situation can easily change if the next resistance at 74.84 is broken with good strength and volume.”

Conversely, some analysts also plotted the clear uptrend and predicted further gains as the altcoins get wiped out. The fellow trader Josh Rager also talked about how the Bitcoin dominance hits new highs. He shared his bullish opinion and claimed that the fundamentals such as the Bakkt launch could keep the dominance up there for a while yet.

$BTC dominance monthly chart looks like the end to the bottom of a market

Looks as if BTC.D capitulated, "v" bottomed followed by a strong recovery

At 72% now, highest since July 2017

With Bakkt coming, we may not see a strong pullback in BTC market dominance anytime soon pic.twitter.com/lhaA6OWom3

— Josh Rager 📈 (@Josh_Rager) September 3, 2019

Last time Bitcoin moved up into five figures and rallied to a new 2019 high, the coming altcoin news showed a positive momentum and were pulled up with it. This time, however, they appear to be breaking down as Bitcoin continues to consolidate.

Meanwhile, the total crypto market capitalization is at $264 billion as Bitcoin dominance hits new high. Right now, BTC’s share accounts for 70.1% of the entire market.