Overview of the current positions of Bitcoin in comparison with other cryptocurrencies
The leading currency Bitcoin can no longer send any bullish impulses. After a consolidation phase over the weekend, BTC/USD is trading around 1 percent lower than yesterday at the start of the new trading week. Some altcoins are also still in the correction. Meanwhile, Cardano buyers and Litecoin investors can see a clear uptrend in their investments. The chart analysis also shows a very interesting development in terms of Bitcoin's market dominance. It could even drop to 30 percent in the next few months.
Bitcoin dominance dropped from 70 to 40 percent
On the Bitcoin dominance chart, the weekly candles show that the Bitcoin market share of the overall crypto market has declined extremely since the end of 2020. Just over a year ago, the market capitalization of Bitcoin accounted for more than 70 percent of the total market of all thousands of crypto currencies, this share has slipped to below 40 percent at the current time. This is the lowest level since January 2018, the end of the 2017-2018 bull cycle, which ended with a major rally in altcoins.
And technical analysis shows that Bitcoin's depreciation in head-to-head versus altcoins may not be over yet. The course is currently forming a potential double top on the BTC dominance chart. This is an extremely bearish pattern and the technical target for bitcoin market share would be down to around 30 percent should the scenario materialize.
The weekly chart also shows that BTC's dominance is in a descending parallel channel. As long as Bitcoin does not manage to free itself from this formation, a further downward trend in Bitcoin market share can also be expected.
Altcoins: Which Can Outperform BTC?
If the altcoins actually gain market share compared to Bitcoin, the question remains as to which cryptocurrencies will benefit. Because it cannot be assumed that all altcoins will benefit compared to BTC. Because among the thousands of projects on the market, there are only a few that can also score with good fundamental data such as good adoptability for applications in the crypto space.
A look at the current price developments shows that Cardano and Litecoin in particular currently have the momentum on their side. The ADA/USD exchange rate has risen by around 10 percent in the past 24 hours alone and is now trading above the $1.5 mark again. Just a week ago, the token cost only $1.1 and has jumped in price by well over 30 percent in a very short time.
Despite the uptrend, ADA/USD is still trading well below last September's highs. At that time, the price hit $3.1, which is more than double the current level.
Cardano clearly beats Bitcoin in a direct comparison
In a direct comparison of Cardano and Bitcoin, the weekly chart shows that Cardano has gained massively in value compared to Bitcoin in the 2020/2021 bull cycle. And the formation of a symmetrical triangle can be seen. Here Cardano's gains over Bitcoin can either expand massively in the next few months or collapse significantly. A directional decision can be expected by July 2022 at the latest, when the resistance and support lines meet.
Looking at analysts' medium to long-term forecast of Cardano compared to Bitcoin, ADA seems to be the investment with greater return potential.
For example, Wallet Investor expects the Cardano price to increase by around 100 percent over the next 12 months. For the period of 5 years, the analysts even expect price increases of more than 500 percent for ADA/USD. That could catapult the altcoin to over $9 per token.
For comparison, Wallet Investor expects the Bitcoin price to increase by just 70 percent over the next 12 months. And the forecast growth in the next 5 years for BTC is also significantly lower than for Cardano at almost 350 percent.
Litecoin: Weaker than Bitcoin and Cardano
Another top trending coin besides Cardano is currently Litecoin. The LTC/USD rate hit a low of around $124 on January 10 and has since climbed to more than $150. That means a plus of more than 20 percent for buyers of the cryptocurrency within a week.
However, the Litecoin price, like Cardano, is still far from its all-time high and shows a clearly weaker development in the past 12 months in direct comparison to Cardano. LTC/USD is currently trading 63 percent below the all-time high of May 2021. Litecoin also performed rather poorly in comparison to many altcoins throughout the 2020/2021 bull cycle.