Bitcoin price is trying to stay at the $38,000 level since the rise of the BTCD index might be a hit of another bull run. Recently, the BTC price has been rallying together with altcoins. It sends mentions of the markets which flip back to a bullish supercycle for Bitcoin.
Since May, the flagship digital asset went through the $42,000 resistance level as it hit a $42,541 peak last July 31.
Together with the market rally, the Bitcoin dominance (BTCD) index also showed an uptrend motion.
According to analysts’ data, it hit a 49.2% three-month high on July 31. The last time it reached this level was in May 2021. That was the time when BTCD fluctuated from its 73.6% yearly high hit at the start of the year last January.
An expert said that the BTC dominance index is measured using the ratio of the Bitcoin market against the rest of the crypto market.
Additionally, it indicates the dominance of the world’s largest cryptocurrency over the rest of the digital asset tokens. Also, he stated that a dominating rally suggests that the market participants are unwilling to come back to altcoins. He added that the reason for this is that altcoins felt the implications of sell-off over the past few months.
In addition, Bitcoin is cryptocurrency’s safe-haven asset.
Furthermore, the last time the BTCD index reached these levels, it crashed from its January peak amid the exhaustive bull market.
Currently, it is above the lows that it hit last mid-May, where Ethereum outperformed Bitcoin, which led the BTCD to fall under 40%. However, this time, the world’s largest digital asset has been making gradual gains in price. It is where altcoins could not go up to match their rise. Therefore, leading to the increasing Bitcoin dominance.
Moreover, BTC continues to reverse the flipping narrative regarding the fall in its active addresses over the past two weeks. It is due to the continuing rebound of Bitcoin’s dominance with price levels that hold over $38,000.
In a recent report, it was revealed that global cryptocurrency users more than doubled. It went from 100 million in January 2021 to 220 million in June.
An analyst said the market’s reinforced support added to the positive sentiment. This often contributes to the higher price stability for Bitcoin. He added that the Bitcoin dominance index’s ongoing uptrend could be a hint of another bull market season.
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