The Bitcoin dominance indicator has fallen to its lowest level for more than three years as it continues to retreat from last year’s epic all-time high.
Bitcoin market dominance has just dipped below its 2021 low and is currently at 39.73% according to TradingView. The move was noted by Spartan Group’s Jason Choi who tweeted the chart on Jan 4.
It is a stark contrast to the dominance Bitcoin had over markets at the same time last year when it was around when it topped 73.6% on Jan 3, 2021. Since then it has declined 46% to current levels.
Lowest Bitcoin dominance value since 2018
According to TradingView, BTC dominance fell to 39.48% on Jan 3. It has not been that low since May 2018 when it dropped to around 39.18%. In September 2021, BTC dominance dropped back below 40% before recovering and falling again in the latter half of the year.
The lowest this value has ever been was on Jan 11, 2018, when it fell to around 35.5% following the first major altcoin surge.
A plunge in BTC dominance is usually a signal that altcoins will start to rally, but they too are in decline at the moment, just at a slower rate.
Ethereum’s market share has been climbing steadily since January 2020 and it is currently 20.23% according to TradingView. ETH dominance hit a local high of 22.35% in early December but has retreated some since.
BTC and ETH combined constitute around 60% of the total crypto market which is less than Bitcoin’s share was in March 2021.
Apart from altcoins, stablecoins collectively occupy 7.15% of the total crypto market capitalization according to CoinGecko. High cap altcoins such as Binance Coin (BNB), Solana (SOL), and Cardano (ADA) have also increased their shares with 3.67%, 2.22%, and 1.80% respectively.
Bitcoin price outlook
BTC has continued to decline over the past 24 hours, dropping another percentage point to trade at $46,430 at the time of press. It has lost 8.4% over the past week and is currently trading down 32.7% from its Nov 10 all-time high.
Bitcoin is trading at the lower limit of its range-bound channel and is below the 200-day moving average suggesting that another decline is imminent. The next level of support from current prices is around $45,000.
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