Why Another Wave Up For Altcoins Is Probable According To BTC Dominance

BTC dominance has always had an inverse effect on the price movements for altcoins. Historically, BTC dominance determines the direction the value of altcoins swings in. Bitcoin has so far maintained majority dominance on the market. But as more time passes, that dominance goes down as altcoins see more demand.

BTC dominance simply shows how much demand there is for bitcoin compared to altcoins. The more BTC dominance rises, the lower the demand for altcoins. This means that for altcoins to rally up further, bitcoin demand has to go down.

Related Reading | Ethereum Breaks 200,000 Validators Milestone, Over $14 Billion Now Staked In ETH 2.0

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Over the years, this dominance has decreased as more and more investors put money in altcoins. One reason for this being a lot of investors feel they have missed the boat with bitcoin and thus are trying to get in early enough on altcoins. Others revolve around the new technological advancements being made by altcoin projects. Hence, investors are putting money into projects that they believe in.

How Current BTC Dominance Affects Altcoins

BTC dominance has continually declined over the past couple of months. Currently sitting at 48.97% dominance, bitcoin now has less than half of the entire market dominance. This trend shows that demand for altcoins is on the rise. So, BTC dominance will continue to see declining numbers.

As the dominance declines, the value of altcoins will continue to go up. Market trends indicate that BTC dominance is poised to drop following the latest recovery.

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BTC dominance poised for a decline

BTC dominance poised for a decline

BTC dominance currently sits at less than 50% | Source: Market Cap BTC Dominance on TradingView.com

When this happens, the demand for alts is expected to pick up very quickly. Leading to another upward wave for the altcoin market. Coins like the number 2 coin Ethereum are forecasted to gain even more dominance as the project gains more notoriety among the investment sector. With ETH 2.0 moving the network to proof of stake and using significantly less power to mine. The reduced environmental impact will mean that mining will become less of a problem.

What This Means For Bitcoin

Alts gaining more dominance does not negate the value of bitcoin. Currently, there are over 5,000 coins in the market all vying for market share. And some of these projects come with some very innovative ideas and tech. Thus, it is expected that as time passes, some of these projects will become popular. Therefore gaining more market share as more investors come into the market.

Related Reading | Fast Money’s Brian Kelly Remains Bullish On Bitcoin, Here’s Why

The declining BTS dominance just means that bitcoin is not the only digital asset investors are rushing to get into. Despite decreasing dominance, bitcoin still remains the number 1 coin in the market. Being the first cryptocurrency and the reason why cryptocurrencies are currently so popular.

But as alts rally in what is usually known as “alts season,” bitcoin will continue to see declining dominance. This will translate to the price of altcoins rallying massively as interest in them grows.

Featured image from CryptoPotato, chart from TradingView.com


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Analyst Justin Bennett Outlines Massively Bullish Path for VeChain, Tracks Key Resistance Levels for Bitcoin, Ethereum and Chainlink

Cryptocurrency analyst Justin Bennett is scrutinizing the decentralized supply chain management platform VeChain (VET), smart contract blockchain leader Ethereum (ETH), oracle protocol Chainlink (LINK) and crypto king, Bitcoin (BTC).

Using VeChain’s past price history as a guide, Bennett suggests the asset may have hit a bottom as he traces a bullish path that – if it plays out – would see the asset increasing by 1,664% by the start of 2022.

Source: Justin Bennett

“What if? VET. This is obviously highly speculative and mostly just for fun. We all know markets don’t repeat exactly. But it’s an intriguing thought nonetheless, especially with so many 100% convinced that the bull market is over. Time will be the judge.”



As for Ethereum, Bennett says he’s watching to see if the second-largest crypto asset can break through two areas of resistance – the first at $2,354 and the second at $2,612.

If ETH retraces, he believes there are areas of support at $1,996 and $1,863.

“When you combine levels this clean with the daily close as confirmation, trading becomes effortless.”

Source: Justin Bennett

As for LINK, Bennett is watching out for resistance at around $20.15 and $26.55. On the downside, Bennett sees $15 as support.

“Starting to add to my LINK long here. Will add more at $17.80 if it comes. First entry just above $15 last week.”

Source: Justin Bennett

The flagship cryptocurrency, Bitcoin, will face a tough battle at $40,600 and then $46,858, according to Bennett. Overall, he’s leaning bullish.

“This is either the start of the second leg of the bull market or a relief rally at the beginning of a bear market. There is no middle ground. I’m still leaning toward the former, but I’m also relying on the chart to tell the story, as always.”

Source: Justin Bennett

The king coin jumped from $34,007 on Sunday to over $40,000 by Monday and is currently attempting to maintain that $40,000 level that Bennett outlines.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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$1.5 Billion in Bitcoin Options Expire Tomorrow. Here’s Who Benefits

In brief

  • Bitcoin options contracts are set to expire on Friday, July 30.
  • Bulls stand to benefit.

Bitcoin options contracts worth $1.5 billion will expire Friday on unregulated derivatives exchange Deribit. With Bitcoin’s price rebounding 10% in the last month, bullish traders could get a sizable discount.

Bitcoin options contracts allow traders the (ahem) option of buying BTC at a set price. Contracts can be traded throughout the month, typically until the last Friday, meaning those who have purchased contracts can wait until the very last minute to see how the price shakes out. At any point, they can exercise the option or sell it to someone else. If they do neither, the option expires.

The max pain price for this period is $35,000, per Deribit. “Max pain” refers to the point at which overall traders get the least bang for their buck. In essence, it’s the area around which they would be better off just buying BTC rather than having wasted money buying the options (to buy BTC) in the first place.

According to crypto data provider Nomics, Bitcoin is currently trading at $39,700, an improvement on the $35,000 it was trading at one month ago. As a result, many traders who bought options as crypto prices were swooning stand to get a discount if they exercise their options now that markets have partially recovered. They’ll buy at, say, $35,000 tomorrow instead of $39,000. And those purchases could then, in turn, push the price of Bitcoin higher still.

Moreover, the put/call ratio of 0.86, which is used to measure investor sentiment, is moderately bearish, giving Bitcoin bulls a chance to clean up. In a nutshell, call options are contracts to exchange BTC at a certain price, if the buyer wants to. Put options are the reverse: They give a person the option to sell at a certain price. When people are buying more calls, it means investors are expecting the price to go up. When they’re buying more puts, they’re looking for a way to cash out should the price crash.

Speaking at the end of April as $3.6 billion in Bitcoin options expired, Arcane Research analyst Vetle Lunde told Decrypt that options expiries can move the market, even at a time when people were increasingly holding onto their BTC.

“We’ve seen Bitcoin rallying with force following all monthly options expiries in 2021, so the market action suggests that large expiries provide a short-term anchor for the price,” he said.

Instead, the price faltered over the next several months, dropping from near-record highs of $58,000 on Friday, April 30, to as low as $31,000 before the June expiry period (which did lead to a rally).

Bitcoin bulls are hoping this expiry period leads to a return to form.


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New Cryptocurrency Tax Legislation in The US to Raise $28 Billion

The American lawmakers proposed new cryptocurrency taxation that would raise nearly $28 billion in extra tax revenue. As part of it, digital asset investors in the US would have to report transactions that exceed $10,000 to the International Revenue Service.

The Senate Aims to Collect More Taxes

According to a recent Bloomberg report, the American government aims to implement stricter rules on companies and people dealing with digital assets. The proposed new taxation law would require investors to report their crypto transactions of over $10,000 to the International Revenue Service (IRS). With this new legislation, the lawmakers expect to raise $28 billion in revenue.

Main senators from both the Republican and Democratic parties revealed that the government would add the funds to the $550 billion budget designed to renovate the country’s transportation and electricity infrastructure.

The lead Republican Senator Rob Portman of Ohio said that Congress expressed a united opinion regarding future cryptocurrency reporting and taxation:

“Everybody’s been talking about the appropriate way to provide more reporting in particular and that leads to better compliance.”

So far, the Biden administration has been requesting local banks and trading venues to report their cryptocurrency transactions to the IRS. Added to it, the upcoming move would aim to reduce the widening tax gap in the USA.


Are Cryptocurrencies a Threat to The US Financial System?

As CryptoPotato recently reported, the crypto skeptic US Senator Elizabeth Warren criticized digital assets as in her opinion, they would harm the American monetary system. The Democrat sent a letter to the US Treasury Secretary – Janet Yellen – and asked for greater regulation for cryptocurrencies. Moreover, Warren insisted on a complete ban for them:

“The hype, the volatility, the wild claims that turn out to be false. As the crypto market grows, so do the risks to our financial stability and our economy.”

The Senator also argued that virtual currencies are not as decentralized as it seems. She opined that many of them are under the control of founders and miners. Warren went further, labeling those in the industry as evil masterminds:

“Instead of leaving our financial system at the whims of the giant bank, crypto puts the system at the whims of some shadowy, faceless group of super-coders and miners, which doesn’t sound better to me.”


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Bitcoin traders express mixed emotions about what’s next for BTC price

The rumor that Amazon would accept cryptocurrency payments sparked a wave of bullish enthusiasm across the crypto market earlier in the week but now this sentiment has begun to wane as Bitcoin (BTC) bulls face stiff resistance at the $40,000 level. 

Data from Cointelegraph Markets Pro and TradingView shows that bears have managed to fend off multiple attempts to flip the $40,000 level to support and defense of this zone continued on July 29 as Bitcoin’s stagnant price action and added to concerns that the price could fall back to last week’s $35,000 to $30,000 range.

BTC/USDT 1-day chart. Source: TradingView

Here’s what analysts and investors are saying about the recent developments in Bitcoin’s price.

The 21-week EMA marks the line between a bull and bear market

Bitcoin’s rapid ascent from $31,000 to $40,925 lifted the price near its 21-week exponential moving average, a level that is widely considered as a bull market indicator according to pseudonymous crypto Twitter analyst Rekt Capital.

As seen in the tweet above, the 21-week EMA is currently near the $40,000 price level, effectively becoming the ‘line in the sand’ that separates bulls and bears.

One of the responses to the above tweet offers a word of caution for overly bullish traders because similar moves in the past were followed by lower lows and an extension of bear market conditions.

BTC/USD 6-day chart. Source: Twitter

As shown by the yellow circles in the chart above, previous instances of the price breaking above the 21-week EMA have resulted in a reversal that leads to a retest of lower lows in the following weeks and months.

Bitcoin whales remain greedy while others are fearful

One group of market participants who have shown little evidence of indecision are Bitcoin whales, who have embraced Warren Buffett’s mantra to “be fearful when others are greedy, and greedy when others are fearful,” by buying up low-priced BTC as weaker hands tap out.

According to data from Santiment, an on-chain and behavioral analysis platform, whale wallets have accumulated 130,000 BTC in the past four weeks as the price of Bitcoin traded below $35,000.

With such heavy accumulation being seen in the lower $30,000 to $35,000 range, some analysts have suggested that whales may attempt to orchestrate another pullback in price so that they can continue to accumulate.

Related: Bitcoin bulls control Friday’s $1.7B monthly options expiry

Long-term cycles offer hope

When near-term confusion prevails, sometimes it’s best to take a step back to see the bigger picture of where the market is and what possibilities the future holds.

According to Inmortal UP ONLY, a pseudonymous Twitter user, Bitcoin’s four-year cycle is currently about 65% through its bull-market phase and the trader predicts a top at $150,000, which will be followed by a correction to $32,000.

Bitcoin price in four-year cycles. Source: Twitter

For traders and holders that prefer to operate on a longer time scale, there remains plenty to be optimistic about in the future for and experienced market participants know the price moves seen over the past few months are part and parcel of the normal progression for Bitcoin.

Further confirmation of the long-term perspective was offered by Ecoinometrics, who compared Bitcoin’s current post-halving price action to performances in the previous two halvings.

As shown above, the current price of BTC is well below the average growth of previous cycles, indicating that the BTC has some “catching up to do” if it will achieve a similar trajectory and reach a new all-time high above $100,000.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.