Key takeaways
- Bitcoin dominance has declined to the 23.6% Fibonacci level after a steady decline for several weeks.
- Low levels of dominance often indicate early stages of capital turnover into altcoins.
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Bitcoin’s dominance has fallen to the 23.6 Fibonacci retracement level, falling to 59% and continuing the decline that began in early November, which may signal the beginning of an altcoin turnover as the leading cryptocurrency’s market share declines from its recent highs.
The decline in Bitcoin dominance comes after rejection at a key resistance area, with the current level representing a key technical threshold that traders are watching for market rotation signals.
Bitcoin dominance tracks the market capitalization of cryptocurrencies compared to the broader cryptocurrency market. A decline in this metric typically indicates a shift in liquidity away from Bitcoin and toward alternative digital assets.
The current pullback to the 23.6% Fibonacci level indicates an early-stage shift to altcoins, as historically low dominance levels are associated with increased investment flows into non-Bitcoin cryptocurrencies.
