Bitcoin Takes Over 50% of Crypto Market Share as Total Market Value Approaches Record-Breaking Levels

Bitcoin Dominance Surpasses 50%
NAIROBI (Coinchapter.com) –
Bitcoin (BTC)
has once again established itself as the leader in the cryptocurrency world, with its dominance surpassing 50%. This resurgence comes at a time when the total market cap of cryptocurrencies is approaching historic highs. Despite altcoins usually taking the spotlight during bull markets, Bitcoin has been at the forefront of the current rally since September 2023.


Source: Ecoinometrics
The approval of Bitcoin Spot ETFs in the US has played a significant role in driving this upward trend, leading to increased trading volumes. Platforms like Bybit have witnessed a surge in Bitcoin activity, solidifying its position as Bitcoin dominance surpasses 50%. As a result, Layer 2 solutions aimed at improving Bitcoin’s scalability have garnered significant interest.
Potential Positive Catalyst: CPI Data
The upcoming release of the Consumer Price Index (CPI) data this Wednesday could have a significant impact on Bitcoin and the broader cryptocurrency market. If the CPI reports lower-than-expected inflation rates, it could create a bullish scenario for Bitcoin. This outcome might encourage the U.S. Federal Reserve to consider reducing interest rates, historically leading to increased investment in riskier assets like cryptocurrencies.
On the other hand, if the CPI data disappoints with higher inflation figures, the market could face downward pressure. This important economic indicator holds considerable influence over Bitcoin’s price movements and could trigger swift market reactions.
Technical Indicators Suggest Potential Bitcoin Breakout
Bitcoin
is currently trading at $62,891.84, representing a 2.32% increase in the past 24 hours. This upward trend indicates a strong recovery from the recent support level of $60,000. On the 4-hour chart, Bitcoin is currently testing the short-term resistance level at around $63,500.
The Relative Strength Index (RSI), a crucial momentum indicator, has risen above the 50% threshold, indicating increased buying activity and a bullish momentum in the market. This upward movement in the RSI aligns with the price’s rebound from the $60,000 support level, suggesting that investors’ bullish sentiment may be strong enough to challenge and potentially surpass the $63,500 resistance level.


Source:
TradingView
On the daily chart, the
BTC
price has been trading within a large descending channel pattern, forming lower highs and lows. While some may view the recent price action as a bearish reversal and a downtrend, the momentum is not excessively bearish. The $60,000 support zone has held the price on multiple occasions, and the market appears to be targeting the upper boundary of the channel.
A breakout above the pattern could indicate a new bullish trend, while a drop below it would be concerning and could potentially crash the market towards the $52,000 support level.