Bitcoin dominance hit the lowest level since July 2019, is it an altseason?
|- Bitcoin has recovered above $9,300, but the upside momentum is still t gain traction.
- Bitcoin's market share has been retreating as some altcoins skyrocketed in January.
Bitcoin, the first and the most popular digital asset, regained some earlier losses to trade above $9,300 during early European hours. However, despite the recovery, the bulish momentum remains weak as we will need to see a strong move above $9,600 for the upside to gain traction.
Bitcoin dominance falling
Notably, Bitcoin has been losing its market share recently as altcoins demonstrated stronger growth in recent days. As a result, BTC's dominance dropped to 64.5%, which is the lowest level since July 2019. Many industry players are now talking about new altcoin season and the recent XRP's 11% surge has increased the speculations.
Notably, the recent polls conducted in crypto twitter, revealed that about 50% of cryptocurrency traders hold mainly altcoins instead of Bitcoin. This phenomenon is explained by the fact that some coins have been much more profitable that Bitcoin this year. Thus, Ethereum Classic (ETC), Dash, ZCash (ZEC) and Bitcoin Gold (BTG) demonstrated tripple digit gains in January, while Bitcoin gained only 25%.
BTC/USD: technical picture
BTC/USD has cleared $9,300 resistance reinforced by 38.2% Fibo retracement for the downside move from July 2019 high to December 2019 low. If the breakthrough is sustained, the bullish momentum may gain traction and take the price towards the next strong resistance of $9,600. We will need to see a sharp move above this handle for the upside to gain traction towards $10,000.
On the downside, if the price slips back below $9,300, we may be in for a sideways trading in a range limited by $9,300-$8,800, the lower boundary is reinforced by SMA200 daily. Once it is out of the way, the downside is likely to gain traction with the next focus on $8,250 (23.6% Fibo retracement) and $8,000 (SMA50 daily).
BTC/USD daily chart
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