Bitcoin’s Dominance Skyrockets as Market Capitalization Tops $1 Trillion
On-chain metrics provider Santiment believes Bitcoin’s dominance and price have been driven by a surge in token circulation.
Bitcoin’s latest momentum has made the market capitalization top the $1 trillion mark, a milestone first seen in February.
The leading cryptocurrency was up by 5.91% in the last 24 hours to hit $54,517 with a capitalization of $1.03 trillion during intraday trading, according to CoinMarketCap.
Santiment believes Bitcoin’s dominance and price have been driven by a surge in token circulation. The on-chain metrics provider explained:
“Bitcoin dominance has been on a major rise the past couple of days, and $54.6k has been breached for the first time since May 12th. Our NVT Token Circulation model is indicating October is the first month we're seeing a bullish divergence since February.”
Santiment previously stated that Bitcoin’s price could witness a surge given that its circulation had reached levels last seen in July. The notion presented was that Bitcoin’s price is usually tagged along whenever circulation rises.
Will an ATH price be witnessed in the Bitcoin market soon?
According to Lex Moskovski, the CIO of Moskovski Capital,said:
“Record amount of Bitcoin has been moved in the last 2 weeks. Something's brewing. Gun to head, ATH may happen sooner than we think.”
Therefore, Moskovski believes the record-high BTC transactions witnessed could send the price through the roof, given that an all-time high (ATH) price of $64.8K was set in mid-April.
By scaling above the $52K level, Bitcoin was able to breach a significant resistance area. Data analytic firm IntoTheBlock said:
“Bitcoin surpasses once again the $52K barrier for the first time since September 7th. The IOMAP reveals strong support right below $50K while approaching a highly contested area around $52,938. At this range, over 353.78K addresses previously bought 212,000 BTC.”
On the other hand, market analyst under the pseudonym CryptoHamster noted:
“Bitcoin has broken the resistance line – and the descending triangle (to the upside). Generally, it is a very bullish sign. Altcoins also support this growth, but one has to be careful about the false breakouts. It would be nice to see the retest and rejection.”
CryptoHamster believes that Bitcoin should retest the $51K level for a breakout to be fully confirmed.
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