Bitcoin’s market share is rising, giving another signal that the bull might be back in force.
Well-known trader Tone Vays has been one of the more tenacious bears of 2019. While many bearish analysts have now flipped bullish, Vays has not yet been convinced. A 100% rise in price from the bottom is not enough, he says (and, given bitcoin’s history, he might be right). But one of the indicators he says is needed to know the bottom is in, is now showing signs of reaching more positive levels: Bitcoin Dominance.
Put simply, this is just the percentage of overall crypto market cap occupied by Bitcoin. Alts have been punished recently as bitcoin surges, with traders selling them to hold funds in BTC. Vays has always said that the $#!7coins need to suffer more before he will go on record saying the bottom is in. He has previously argued for lows of $1,800 to come, even as BTC trades at more than three times that level. But now, finally, it seems he may be coming around.
Bitcoin dominance is up to 58%, its highest since the December 2017 peak of the bubble, when it briefly topped 60%. Ignoring that short-lived double top in Dominance, it’s been exactly two years since bitcoin occupied such a large market share. Vays thesis is that more altcoins have to die and concentrate money and attention into BTC to know the bottom is in. So just maybe, he says, this is a sign that it’s the end of the bear market after all. Maybe.
He’s still not 100% convinced, but it’s a start. We still need to see a pullback, he says – again, with good reason. When we see how far and hard bitcoin dips after this rally, then we’ll know a lot more. We haven’t yet seen that pullback at all, so we’re missing a crucial piece of information.
But hesitantly, one by one, the last few bears are starting to turn bullish. Better late than never.
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