Bitcoin (BTC) recorded significant gains recently, but that does not mean the market is poised for a full bull run.<\/p>\n
On-chain patterns analyzed<\/a> by CryptoQuant Quicktake author Woominkyu show that previous bull markets have kicked off while Bitcoin witnessed a decline in market share dominance. Unfortunately, the opposite is the case now.<\/p>\n According to Woominkyu, a decline in Bitcoin\u2019s dominance signals investors are diversifying their funds into alternative coins (altcoins), other cryptocurrencies besides BTC. In other words, the market has to experience an altcoin season before BTC can have its bull run.<\/p>\n When investor capital moves from BTC to altcoins, the broader market can witness a major rally that would trigger a bull run. Woominkyu said BTC could witness a new bull run if its dominance decreases.<\/p>\n \u201cLooking at this chart, we can see that, historically, major bull runs across the market have coincided with declines in Bitcoin dominance. If this pattern repeats, we might anticipate the beginning of a new crypto bull market as Bitcoin dominance decreases,\u201d the analyst said.<\/p>\n Over the past week, Bitcoin\u2019s dominance has been increasing<\/a>. Data from CoinGecko shows<\/a> that the leading cryptocurrency accounted for 54.7% of the total market share as of October 24. However, at the time of writing on November 1, the share had increased to 58.2%.<\/p>\n The last time Bitcoin\u2019s dominance rose to this level was during a brief spike to 64.8% on August 5, shortly before the yen-dollar crisis that saw the crypto market bleed millions took place. A more sustainable rise in Bitcoin\u2019s dominance was seen in March 2021, during the last bull cycle. The asset\u2019s market share had remained above 60% for about six months before then.<\/p>\n Considering Woominkyu\u2019s analysis, BTC\u2019s dominance would need to fall before the asset can witness another bull run. However, this may take a while because the Bitcoin network is seeing a huge capital inflow.<\/p>\n The launch of spot Bitcoin exchange-traded funds (ETFs) in the United States and several other markets paved the way for traditional finance investors and institutions to gain access to the world\u2019s largest blockchain network. These funds, especially U.S. ETFs, have recorded<\/a> large inflows since October. This persistent capital flow has also driven the price of BTC above<\/a> $73,000 for the first time since March.<\/p>\n The post Bitcoin Likely to Enter New Bull Market If This Happens: CryptoQuant<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Bitcoin (BTC) recorded significant gains recently, but that does not mean the market is poised for a full bull run. On-chain patterns analyzed by CryptoQuant Quicktake author Woominkyu show that previous bull markets have kicked off while Bitcoin witnessed a decline in market share dominance. Unfortunately, the opposite is the case now. Diversifying Investor Capital […]<\/p>\n","protected":false},"author":0,"featured_media":17276,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-17275","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/17275"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17275"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/17275\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/17276"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17275"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17275"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17275"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Diversifying Investor Capital<\/h2>\n
Bitcoin Dominance Is Increasing<\/h2>\n