Key Points
- Bitcoin’s popularity is significantly lower than in March 2024, despite bullish market signals.
- The Crypto Fear and Greed Index indicates a predominant market greed as Bitcoin surpasses the $64k resistance zone.
Bitcoin’s [BTC] market sentiment is turning bullish, with the Crypto Fear and Greed Index standing at 63, indicating a market dominated by greed. This comes as Bitcoin races past the $64k resistance zone.
Despite the enthusiasm within the cryptocurrency community, wider market interest is minimal. A user named Alex Becker highlighted this in a post on X, stating that the current interest is only a small portion of the excitement seen during the 2020 run.
Bitcoin’s Popularity on Google Trends
The popularity of the term “Bitcoin” on Google Trends supports Becker’s statement. The term reached peak popularity in the first half of 2021. However, the rally from last October to March 2024 saw Bitcoin’s popularity score reach 58. In contrast, last week’s score was only 20, meaning Bitcoin searches are only a third of what they were earlier this year, even as Bitcoin trades just 11% below its all-time high.
Understanding Capital Flow with Bitcoin Dominance
At the time of writing, the total cryptocurrency market capitalization is $2.3 trillion. Bitcoin’s share of the total market cap, known as Bitcoin Dominance, stands at 57.66%. The weekly chart shows the 60% area as a resistance zone.
The BTC.D chart generally has an inverse correlation with the performance of altcoins. A fall in BTC.D suggests that the altcoin market cap is rising faster than Bitcoin’s, which would be a positive development for the altcoin market.
Long-term investors can use this dominance chart to understand whether Bitcoin or altcoins are the market’s focus at any given time.
A Positive Sign for Alt Season
The market capitalization of the top crypto assets, excluding Bitcoin and Ethereum [ETH], is represented in the chart above. It broke out past a descending channel formation and also breached the 50% Fibonacci retracement level from the 2020 bull run.
This sets the stage for a strong performance from altcoins in the coming months. From a technical perspective and looking at historic trends, the crypto market is expected to go upward over the next 3-6 months.
