The cryptocurrency market has been increasing since the beginning of 2019. However, this increase has not been equally divided between Bitcoin and altcoins. The Bitcoin price has increased at a faster rate, causing the altcoin market cap dominance to decrease.
However, that has recently begun to change. Numerous altcoins, mostly Chinese based, have posted increased by up to 40%, likely resulting from an endorsement of blockchain technology by the Chinese government.
The altcoin market cap has been showing signs of life and has initiated a gradual upward move. The October 26 decrease looks more like a short-term correction than the beginning of a reversal.
Crypto analyst @paddystash stated that the altcoin market cap dominance has been gradually increasing after the sharp downward move of October 25-26, when Bitcoin enjoyed one of its biggest surges yet.
https://twitter.com/paddystash/status/1191346509331206150
He mentioned Ethereum’s short-term increase and the previous increases generated by Chinese coins.
How long will the altcoin market cap continue to increase? Let’s take a closer look.
Altcoin Dominance
Altcoin dominance has been decreasing since the beginning of 2018 when it was trading near 65%. The decrease briefly stopped at 30%, and the price has been increasing since. 30% represents a minor support area, while there is a major support area at 23%.
Additionally, the market cap has made three higher lows, in September, October and November respectively, combined with a bullish cross of the 10- and 20-day moving averages (MA).
The price is trading above both, heading for the minor resistance area at 35%.
It looks as if the price will eventually get there and possibly move higher.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
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