Bitcoin has seen a massive upswing over the past couple of days that brought a firm end to its consolidation phase and is now allowing it to confront its key resistance around $12,000.
This level has been holding strong as resistance, and throughout the year, any break above this level was met with heavy selling pressure that catalyzed intense selloffs.
Bitcoin has also been guiding the market over the past week, but this trend appears to be shifting – as altcoins sold-off today while BTC saw a strong and sustainable move higher.
This is quite unusual, as typically altcoins move in tandem with the rest of the market.
One explanation for this may be a trend seen while looking towards BTC’s market dominance, which is beginning to rebound and may continue surging for the next couple of months.
While speaking about this possibility, one analyst stated that he is watching for Bitcoin to continue seeing growing dominance over the aggregated market for the coming few weeks and months, before it peaks in December.
At this time, altcoins may be able to recapture their momentum and rally higher.
Bitcoin Approaches $12,000 Resistance as Buyers Take Control
At the time of writing, Bitcoin is trading up nearly 2% at its current price of $11,930. This is around the price at which it has been trading throughout the past few hours.
The strong move that helped lead the crypto up to these highs did not create a tailwind for the aggregated market, and BTC’s push higher actually has come about at the expense of altcoins.
There’s a strong possibility that this trend will persist in the near-term, as investors appear to be fleeing altcoins in favor of BTC at the moment.
Analyst: BTC Dominance Likely to Continue Climbing Until December
While mapping out Bitcoin’s dominance over the market, one analyst explained that he expects it to continue rising for the coming couple of months before peaking in December.
At this time, altcoins may begin seeing rallies that allow them to catch up to BTC, but until then, they may continue underperforming.
“BTC: Regarding the dominance; still the same figure here. December is the period to buy altcoins.”
Image Courtesy of Crypto Michael. Source: BTCUSD Dominance on CoinPriceWatch.
The coming few days may shine a light on this possibility and validate or invalidate if Bitcoin’s dominance will really continue rising for the coming few months.
Featured image from Unsplash. Charts from CoinPriceWatch.