Bitcoin recorded significant gains recently, but that does not mean the market is poised for a full bull run.by CryptoQuant Quicktake author Woominkyu show that previous bull markets have kicked off while Bitcoin witnessed a decline in market share dominance. Unfortunately, the opposite is the case now.According to Woominkyu, a decline in Bitcoin’s dominance signals investors are diversifying their funds into alternative coins , other cryptocurrencies besides BTC.
“Looking at this chart, we can see that, historically, major bull runs across the market have coincided with declines in Bitcoin dominance. If this pattern repeats, we might anticipate the beginning of a new crypto bull market as Bitcoin dominance decreases,” the analyst said.that the leading cryptocurrency accounted for 54.7% of the total market share as of October 24. However, at the time of writing on November 1, the share had increased to 58.2%.
Considering Woominkyu’s analysis, BTC’s dominance would need to fall before the asset can witness another bull run. However, this may take a while because the Bitcoin network is seeing a huge capital inflow.