A popular crypto analyst thinks Bitcoin (BTC) is about to assert its dominance over the rest of the crypto markets.
In a new YouTube video, Benjamin Cowen tells his 768,000 subscribers that the Bitcoin Dominance chart (BTC.D) could soon surge to higher than 50% going into the end of the year.
The BTC Dominance chart tracks how much of the total crypto market capitalization belongs to Bitcoin. A bullish BTC Dominance suggests Bitcoin is rising faster than other crypto assets, or altcoins are losing value while the leading crypto surges.
At time of writing, BTC.D is hovering at 41.49%.
According to Cowen, BTC.D is currently in a long-term downtrend but highlights that it is currently sitting at its diagonal support, suggesting that a strong bounce could be on the horizon.
“If you look at the general direction of this, it seems like it’s arguably down… Maybe that’s building towards something that we’re seeing the beginnings of. Maybe it comes back up [to 58%] and it comes back down [to 40%].”
A surge in Bitcoin Dominance in the coming months could actually help set the stage for an altseason in the future, according to Cowen. An altseason is a period where altcoins rally hard while Bitcoin consolidates.
“Everyone talks about altseason and whatnot, but in order to get a true altseason like we’ve seen in bull markets past, a lot of times you need a lot of the juice that comes from already having [Bitcoin] dominance relatively high.”
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Featured Image: Shutterstock/Panassak Charnprasert