Bitcoin’s share ( Price : $6099) of the cryptocurrency market hit a 9 week high today. It appears that investors are switching their money from alternatives into the industry’s #1 crypto asset. This is not good news for the alt coins but obviously a great indicator for us as bitcoin traders.
As tracked by CoinMarketCap the share of bitcoin rose to 42.48 % earlier on Thursday morning. This is the highest level since April 14.
The Dominance Index is an indicator that tracks the percent of the total cryptocurrency market capitalization contributed by the leading cryptocurrency. So, a rising dominance rate essentially means the demand for bitcoin is greater than the demand for other coins.
For us as bitcoin traders it might be a sign that the bottom was found and bitcoin could go on another bull run.
Obviously one indicator by itself isn’t conclusive but it also appears that we are forming a triple bottom at the $6000 usd area.
I’m keeping a close eye on the charts today and will be ready to go long. ( I am using etoro to go short or long depending on the charts). The bitcoin dominance index is just another tool I use to see if bitcoin is a good long or not.
All in all keep an eye on the charts guys. Bitcoin is ranging now so its just a matter of time till it breaks out in either direction.