Bitcoin’s dominance might set a new record, on this condition

• Though BTC’s price increased, its trading volume dropped in the last 24 hours. 
• Metrics looked bullish on BTC, suggesting a further uptrend. 

Bitcoin [BTC] has always dominated the crypto market. In fact, in recent times, BTC has had a market dominance of more than 52%, reflecting its sheer popularity. 

Read Bitcoin’s [BTC] Price Prediction 2023-24

However, if the latest data is to be considered, the number might rise further, especially if BTC continues to hover around a particular price band.

Bitcoin’s dominance might increase!

If short declines are to be ignored, BTC’s dominance has grown dramatically over the last several years. Just to compare, while at its press time dominance stood at 52%, Ethereum [ETH], which is the second-largest crypto, had a dominance of only 18%.

Though ETH’s dominance was also commendable, it was in no comparison with Bitcoin. 

The logical path forward for #Bitcoin dominance.

This should give alts some room to run if $BTC stays around $34-$35k and it will certainly give them room if BTC makes new YTD highs. pic.twitter.com/wC9I8WChuf

— Caleb Franzen (@CalebFranzen) November 4, 2023

Caleb Franzen, a popular crypto analyst, recently revealed an interesting development on X (formerly Twitter). As per his tweet, BTC’s dominance could witness a further boost in the days to come if its price remains somewhere around the $34,000 and $35,000 mark.

Bitcoin looks comfortable above $35,000

A look at BTC’s price action broadly suggests that BTC will be able to remain in the band. According to CoinMarketCap, the coin was up by more than 1.15% in the last 24 hours. At the time of writing, it was trading at $35,179.83 with a market capitalization of over $647 billion.

However, its trading volume had dropped over the last day, which raised an alarm. Nonetheless, CryptoCon, another popular crypto analyst, pointed out a key metric, which suggested that BTC might be expecting another rally soon.

I don’t mean to get everybody riled up, but the Monthly Stochastic never gets this high unless something great is about to happen for #Bitcoin. pic.twitter.com/hcgshPUxA5

— CryptoCon (@CryptoCon_) November 4, 2023

As per the tweet, BTC’s monthly stochastic was near a level that has been historically followed by a price uptrend. For instance, similar situations happened back in 2013, 2017, and 2022.

Therefore, a better look at BTC’s network health was needed to see whether BTC could actually initiate another rally anytime soon.

According to data analyzed by AMBCrypto via CryptoQuant, Bitcoin’s Miners’ Position Index (MPI) and Binary CDD were both in the green. Thus, at press time, both miners and long-term holders were reluctant to sell their holdings.

Source: CryptoQuant

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The derivatives market stats also looked pretty bullish. Notably, the king coin’s Open Interest increased along with its price. Whenever this happens, the possibility of trend continuation remains high.

On top of that, as per Coinglass, BTC’s Funding Rate was green as well, meaning that Futures buyers were purchasing the coin at its higher price at the time of publication.

Source: Coinglass