According to TradingView data, bitcoin dominance has been on the rise in recent days.
In fact, on 7 June, bitcoin hit a monthly low of just over 41%, while it has now risen to 45% after touching 46% two days ago.
Moreover, the yearly low of 40% on 18 May now seems distant, although the current level is still well below the yearly high of over 72% on 2 January.
The fact is that the momentum of altcoin prices, which drove the decline in bitcoin’s dominance from January until mid-May, seems to have broken down. So on the one hand, the slightly recovering bitcoin price compared to last weeks price helped dominance to recover, while the weakness of altcoin prices did the rest.
On the other hand, for example, the price of ETH has fallen 39% over the past 30 days, with a weekly drop of 8%.
BNB, XRP and DOGE have also lost around 40% compared to a month ago, but DOGE has lost 13% compared to seven days ago.
ADA on the other hand has lost less in the last 3 days (-24%), but still lost 9% in the last seven.
In other words, while bitcoin is experiencing a good moment, this perhaps cannot yet be said for the majority of altcoins.
Why Bitcoin’s dominance is growing again
According to Santiment, the current situation would make further declines in the price of BTC less possible.
It is also worth noting that the first two weeks of June have seen more positive news regarding Bitcoin than we have seen in weeks. In other words, sentiment really does seem to have reversed from the panic of mid-May, and that is specifically true of Bitcoin at the moment.
According to FXempire‘s Vladimir Zernov, the fact that bitcoin’s price has managed to return above the EMA 20, or $38,000, could mean that it is also looking to stabilize above the $40,000 resistance level, as the RSI now remains in moderate territory and there is plenty of room to gain further upside momentum should the right catalysts emerge.
At this point, the previous resistance level of $38,000 could serve as the first support level for the bitcoin price, which should be kept an eye out for a possible return above $40,000.