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At 03:00 (UTC) on November 26, 2020, the price of Bitcoin (BTC) was at $18,200 (based on MCS, MyCoinStory). A large drop of about $2,400, from a 24-hour high of $19,500 to a low of $17,119, negatively affected the positions of those who were optimistic about Bitcoin reaching $20,000 in November. In fact, liquidations of hundreds of billions of dollars have occurred in a single day on many cryptocurrency derivatives exchanges.
Bitcoin (BTC) has nearly doubled in about two months, from around $10,000 in early October to the end of November. The rise in liquidity in the market, the entry of institutions into the market, and the weakening of the U.S. dollar have created a dramatic upward curve.
However, it seems that the buying momentum of Bitcoin (BTC) is not sufficient enough to rewrite the highest point of Bitcoin. When the price went past $19,000, Bitcoin Dominance dropped sharply, and the assets of the decline were absorbed into the major altcoin markets.
Since November 20th, the price of Bitcoin (BTC) has moved sideways at the USD 18,000 level, and the prices of major Altcoins have risen. As shown in the graph above, the dominance of major Altcoins has risen significantly, while the dominance of Bitcoin (BTC) experienced a significant decline starting around the 20th.
It is better to interpret this as an increase in the price and dominance of Altcoins by moving the funds out from Bitcoin (BTC) and into Altcoins rather than a growth of the whole cryptocurrency market.
In the past, the decline in Bitcoin (BTC) Dominance had often been a leading indicator of a decline in price.
In order to break the $20,000 line of Bitcoin (BTC), the dominance of Bitcoin (BTC) must rise further. Dominance should not be simply taken away from a given pie, but a rise in dominance should occur while new funds flow into the market making a bigger pie for everyone. To this end, positive signals such as additional liquidity supply from governments, expansion of institutional investments and bases, and increase in Bitcoin trust and fund services will be the beacon for a bright future of Bitcoin (BTC).
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