Bitcoin Dominance & Macro Factors Point to Continued Crypto Bull Run
Bitcoin Dominance & Macro Factors Point to Continued Crypto Bull Run
Despite recent market turbulence and Bitcoin's decline, analysts interpret Bitcoin Dominance (BTC.D) trends and macroeconomic factors as strong signals that the crypto bull run is not over. Key indicators, including current BTC.D levels and the absence of euphoric sentiment at recent highs, suggest Bitcoin still has significant room for growth before reaching a market peak. This phase is also expected to eventually usher in an 'altseason', with supporting catalysts like the potential end of US Federal Reserve's quantitative tightening.
Bitcoin Dominance Counters Market Top Narratives
Recent market volatility, marked by an 18% decline in the total market cap and Bitcoin leading the fall, has led to speculation about a market top. However, analysis of Bitcoin Dominance (BTC.D) suggests otherwise. Popular analyst Colin Talks Crypto, referencing Matthew Hyland's work, highlights that a bearish trend in BTC.D, characterized by a negative RSI and a bear flag, could paradoxically signal a positive outcome for the broader crypto market. A potential capitulation in BTC.D is seen as a precursor to widespread gains across all cryptocurrencies.
Bitcoin Price Poised for Further Growth
Collin Talks Crypto further explains that the final phase of a market bull run typically involves a rise in Bitcoin's price accompanied by a fall in BTC.D, leading into an 'altseason' as observed in 2017 and 2021. Critically, a drop in BTC.D below 49% has historically confirmed the Bitcoin cycle top. With current Bitcoin Dominance around 61%, analysts conclude that Bitcoin's price retains considerable potential for growth before reaching its market peak. This perspective is reinforced by the sentiment that fears of a 50% Bitcoin crash are likely overblown.
Macroeconomic Tailwinds and Lack of Euphoria
Beyond BTC.D, other indicators support an optimistic outlook for Bitcoin. The analyst notes that Bitcoin's previous all-time high around $126,000 did not generate the euphoric or overheated sentiment typically associated with cycle peaks, suggesting more upside. Furthermore, macroeconomic factors are aligning as bullish catalysts. The anticipated end of the US Federal Reserve’s quantitative tightening (QT) by December 1st, alongside a potential US government reopening between mid-November and early December, are expected to provide supportive conditions, reigniting the final leg of the bull run.
Current Bitcoin Market Snapshot
At the time of writing, Bitcoin is trading at $102,283, experiencing a slight daily loss of 0.07%, while its daily trading volume has increased by 25.29% to $85.58 billion.