SteemitCryptoAcademy-Bitcoin and Crypto Markets Analysis - April 10, 2025- Bitcoin Dominance is the main influencer on alternative currencies.
Hello steemians,
The Bitcoin dominance index, which represents the share of the market capitalization of Bitcoin in relation to the entire cryptocurrency market, has long constituted a central barometer to evaluate the deep dynamics which govern investment flows in this ecosystem. When this dominance increases, this generally reflects a movement of retreat towards Bitcoin, perceived as a safe haven in phases of uncertainty or consolidation; increased search for returns and an appetite for risk.
Observing recent movements on this chart clearly highlights two major episodes of declining dominance that had notable repercussions on the entire market, at the end of 2023, Bitcoin dominance recorded a contraction of around 8%, which coincided with a phase of spectacular expansion of altcoins, the latter taking advantage of the release of liquidity at the expense of Bitcoin to record massive gains, even more markedly, at the end of the year 2024, dominance fell by more than 11%, and again, this ebb in Bitcoin's primacy was followed by a particularly strong upward movement in alternative markets, thus confirming the inverse correlation between these two market segments.
Today, in April 2025, the situation presents a potential inflection point, since Bitcoin's dominance has now reached 63.26%, positioning itself in the immediate vicinity of the upper limit of the bullish channel in which it has been evolving for several months. This level, located around 64.36%, constitutes a zone of significant technical resistance which could, if it were to hold, generate a temporary downward reversal of dominance, such a scenario would offer an opportunity for a short-term rebound. term for altcoins, which have historically benefited from each phase of Bitcoin's decline in terms of dominance.
However, it is appropriate to qualify this perspective by considering the underlying trend, which remains resolutely bullish, even in the event of a one-off correction, the higher objectives such as the threshold of 66.11% remain relevant and could be achieved in the medium or long term if Bitcoin continues to attract the majority of capital, this means that, in the current circumstances, a simple marginal drop in dominance, although numerically modest, could be enough to trigger an amplified reaction on altcoins, as the markets are sensitive to relative inflections of this parameter.
In summary, the market seems to be in a pivotal phase where any hesitation of Bitcoin to cross its current resistance could be exploited by altcoins to begin a catch-up phase, however, in a longer term perspective, the logic of concentration of flows towards Bitcoin could prevail again, confirming its central position in the market architecture and imposing on altcoins a dynamic more dependent on the cycles of the historic leader of cryptocurrencies.
Warm regards,
@kouba01 (Steem Representative)
