legendary analyst Peter BrandtCommented on a metric he followed to find an answer as to whether the Bitcoin price had what it took to recover after months of trouble.
Peter Brandt, who has become one of the famous names in the crypto world by correctly predicting the collapse of Bitcoin in 2018, shared on his Twitter account, “bitcoin He shared his comment that the “Dominance Chart (BTC.D)” metric reaching 50% is very positive for the price trajectory.
“This graph may be showing a big narrative. A decisive closing of more than 50%, bitcoin It can be very positive for him.”
The Bitcoin Dominance chart, which is used to track how much of the total crypto market capitalization is owned by Bitcoin, has not hit 50% since July 2021, when it bottomed around $30,000 before rising to an all-time high of $69,000.
Koinfinans.com As we reported earlier, a rising BTC dominance rate can be interpreted as Bitcoin rising faster than other crypto assets, or altcoins depreciating and market cap and leading cryptocurrency rising.
Traders are rising BTC.D chartInvestors see Bitcoin as a sign that Bitcoin is in the relatively safe zone, suggesting that most speculators are leaving the crypto markets.
On the other hand, a falling BTC.D indicates that altcoins are gaining value faster than Bitcoin. Traders often interpret a bearish BTC.D chart as a signal for foam and over-speculation in the crypto markets.
In addition to the 2018 Bitcoin crash call, Brandt also warned investors in April that the leading cryptocurrency by market cap would fall below $30,000, and was successful in his predictions.
At the time of writing, Bitcoin was trading at $20.929, up 1.26%.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.