Tag: Btc.D

Bitcoin Dominance Aims At Historic Lows, Unprecedented Altcoin Season Potentially Ahead

by NEWSBTC

While Bitcoin continues to take a beating in terms of dollars, the top cryptocurrency also continues to lose its share over the market cap. In fact, with the most recent support level breached, BTC dominance could be targeting historic lows.

Historic lows in BTC dominance could mean that an altcoin season unlike ever before is potentially ahead. Here’s a closer look at the metric that weighs Bitcoin against the rest of the crypto space and how it could impact altcoin performance.

Bitcoin Continues To Lose Cryptocurrency Market Dominance

At one point, there was only Bitcoin. As the industry grew, a metric was born called BTC dominance that made it more clear how much weight the top coin had compared to the rest of the market.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Prior to 2017, Bitcoin accounted for as much as 95% of the entire cryptocurrency market, but fell to a low of 35% less than a year later during what is considered to be the greatest altcoin season on record.

Related Reading | 2022: The Year The Secular Bitcoin Bull Run Could End

After reaching such extremes in 2018, by 2020, Bitcoin had recovered more than two-thirds of the market cap. Dominance topped out near 70% where it sharply reversed all throughout 2021.

Get 110 USDT Futures Bonus for FREE!

At the close of the 2021 yearly candle, a several year trading range was officially breached. The well defined range is even more visible in the six-month BTC.D chart. And it could create the conditions necessary for an unprecedented altcoin season.

BTC.D_2022-01-04_12-56-23

The yearly (left) and six-month (right) BTC.D chart | Source: CRYPTOCAP-BTC.D on TradingView.com

Unprecedented Altcoin Season Could End At 32% Dominance

With a decisive close on high timeframes, lower timeframe patterns could provide clues as to where dominance might bottom out once again.

Related Reading | Bitcoin Falls Flat: Examining A Rare Bull Market Corrective Pattern

The target of a head and shoulders top sent BTC.D to the dashed line, reinvigorating altcoins but still falling short of the mania seen during the 2017/2018 peak.

BTC.D_2022-01-04_13-03-42

A descending triangle could target 32% dominance | Source: CRYPTOCAP-BTC.D on TradingView.com

With a potential descending triangle breaking down, the measure rule would make the target of the structure around 32% dominance. The target would suggest a move beyond the former historic low set years ago – and create the atmosphere needed for the aforementioned altcoin season mania.

But it all could come at the expense of Bitcoin and its undisputed reign as the number one cryptocurrency by market cap.

Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice.

Featured image from iStockPhoto, Charts from TradingView.com

Source

Tagged : / / / / / / / /

Analyzing Altcoin Season And The Impact Of A New Bitcoin All-Time High

by NEWSBTC

Bitcoin price is only striking distance away from potentially setting a new all-time high, or only about a 15% move higher for the new record to be set. As the top-ranked cryptocurrency surprisingly weathers the macro turmoil as of late, altcoins have suffered dramatically and for the most part bled while BTC has been rising.

Alt investors are capitulating, and moving their capital into BTC as to not miss the coming last leg up. But what exactly does this mean for the ongoing altcoin season? Is it over? Or will there be another leg up like there could be in Bitcoin – a move that is becoming increasingly clear by the day?

Alt Season, Bitcoin Dominance, And The Theory Of Five Waves Down

Bitcoin and altcoins have a very unusual relationship, despite being assets of the same class. Top traders such as Nik Patel have spent years working to understand the strange, cyclical behavior between BTC and alts, and have found some success.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

After such an explosive altcoin season, the market is convinced that the music has already stopped, asset prices have topped out, and have started to reallocate heavily into the strength of BTC.

Related Reading | How 90-Year Old Market Wizardry Predicted The Bitcoin Breakout

But much like Bitcoin’s recent pullback is close to proving to be little more than a massive bull market shakeout, due to the relationship between alts and BTC, this divergence between the two types of crypto assets could be a similar shakeout.

Get 110 USDT Futures Bonus for FREE!


BTC dominance suggests another wave down. | Source: CRYPTOCAP-BTC.D on TradingView.com

Many analysts, such as Elliott Wave International’s Tony Carrion, subscribe to the idea that BTC is about to enter a wave five impulse against the dollar. That would suggest that BTC just completed a wave four, which in the end was a big bear trap. But what if alts are close to finishing a wave four against BTC, with another wave to follow? That’s exactly the picture BTC dominance tells.

Comparing the total altcoin market cap sans BTC against the king itself, shows that alts might shockingly be undervalued by comparison. A similar shakeout in momentum can be seen during the last cycle using the LMACD, pictured below.


Alts are lagging behind BTC in valuation comparatively. | Source: CRYPTOCAP-TOTAL2 on TradingView.com

Which Altcoin Will Survive Best Against BTC When Retail Returns?

Looking at the total crypto market cap and comparing it against Bitcoin price, there are some similarities between the two potential points highlighted by an ascending triangle. The bullish chart pattern if valid would result in a similar up move – taking the cycle to its climax in both Bitcoin and altcoins.


An ascending triangle fractal could launch alts to new highs. | Source: CRYPTOCAP-TOTAL on TradingView.com

With so many altcoins having already performed so well, capital very well could flow into other lagging coins, leading to underperformance in alts that have previously done well.

Related Reading | Astro Crypto: Summer Bitcoin Slump Could Bring Bountiful Fall Harvest

For example, during the last cycle, although both BTC and ETH went on to new highs, it was Litecoin and XRP that performed the best during the last leg up.

Both assets were well below the triangle consolidation during the last cycle, and once again have found themselves lagging severely behind. Is this time different? Not much has changed from cycle to cycle.


Underperforming altcoins could perform the best in the next wave | Source: CRYPTOCAP-TOTAL on TradingView.com

The direction of BTC dominance can be deceiving, as the direction of the chart is down when altcoins are doing well. The rest of the charts, which use the same assets in unique juxtapositions, make for a more compelling argument as to why altcoin season has barely even started yet. And the current divergence between BTC and alts is possible the same type of a shakeout that most of the market just fell for in the BTCUSD trading pair.

The psychology behind this expectation, is that the market has realized it was wrong about BTC, and is selling USD, alts, anything to get back into position. When Bitcoin gets back to new all-time highs and attracts more attention to the market, newcomers will go to alts and not BTC.

The higher the top-ranked cryptocurrency gets toward $100,000 and more, the less likely anyone but institutions or the extremely wealthy can afford it. Altcoins will be the next best bet – especially ones that have no sellers remaining such as those that have underperformed thus far.

Follow @TonySpilotroBTC on Twitter or via the TonyTradesBTC Telegram. Content is educational and should not be considered investment advice.

Featured image from iStockPhoto, Charts from TradingView.com

Source

Tagged : / / / / / / / / / / /

Why Bitcoin Dominance Could Submit To Altcoin Season Several Months Longer

by NEWSBTC

Bitcoin price is struggling to break through resistance at $50,000, and it could partially be altcoins to blame for the weakness. The most recent technical structure on the highest time frames suggests that not only could alts continue to gain against BTC dominance, altcoin season itself could last a while longer.

Bitcoin Dominance And Technical Analysis Using The Metric

Technical analysis is a subjective art. The practice has enough naysayers as is, but even those that subscribe to the study don’t always believe that all charts are created equally.

For example, there are several industry vets that do not believe BTC dominance – a metric that weighs Bitcoin against the rest of the crypto space in terms of market share – has value as part of crypto analysis.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Related Reading | Total Crypto Market Cap Reenters Monthly RSI Bull Zone

If Ethereum outperforms Bitcoin, for example, dominance might dip as a result. The magnitude of this is enhanced further due to the sheer volume of unique altcoins that exist today. Some even argue that the metric itself was once useful, but less so due to dominance not including the vast world of NFTs or the constant sea of new DeFi projects springing up.

For those that are believers, the recent altcoin season could have been predicted with some degree of accuracy. And if the metric continues to hold weight, altcoin season might have another few months left.

Get 110 USDT Futures Bonus for FREE!

BTC.D_2021-08-30_14-33-31

BTC.D_2021-08-30_14-33-31


Could altcoins beat Bitcoin at its own game a while longer? | Source: CRYPTOCAP-BTC.D on TradingView.com

Why Altcoins Season Could Last Several Months Longer

BTC dominance has established a massive trading range between 70% and 38% dominance. While altcoin sentiment was at its worst compared to Bitcoin, the range failed to break to the upside, resulting in a swing to the lower boundary of the trading range.

BTC.D stopped short of touching the previous bottom, but is following a pattern from the last cycle that suggests not only will the lower boundary be touched, lows will be swept and perhaps a new range reached.

Related Reading | New To Bitcoin? Learn To Trade Crypto With The NewsBTC Trading Course

Technicals also support a fall into the bear zone – or oversold levels – on the Relative Strength Index. The total crypto market cap has also reentered the bull zone on the RSI, all while Bitcoin struggles with resistance.

The LMACD is still fully red on the histogram and not nearly at the depths, lengths, or oversold levels as the last market cycle. All of the signals combined suggest that altcoins are likely to outperform Bitcoin for another few months.

A monthly candle close below the trading range highlighted in the chart above might be the exit signal that altcoin season is over, and putting any crypto capital back into BTC might become the more profitable venture again. Before it happens, there could be extreme volatility on the dominance chart in a battle that’s brewing between Bitcoin and altcoins.

Follow @TonySpilotroBTC on Twitter or via the TonyTradesBTC Telegram. Content is educational and should not be considered investment advice.

Featured image from iStockPhoto, Charts from TradingView.com

Source

Tagged : / / / / / / / / /

Bitcoin Loses Crucial Support Never Broken During Last Bull Run

by NEWSBTC

With Bitcoin price falling to the low $40,000 range, debate has picked up on if the once trending cryptocurrency’s bull run is now over. There’s no truly telling for sure, however, this time is very different than the last bull market.

Why? Because Bitcoin price just lost a key level that never once saw a weekly close below during the last market cycle. Could this be it for the bullish impulse – long before predictions of $100,000 or more per coin are ever reached?

Crypto Cycle Could Conclude With Key Level Lost From Past Trends

Cryptocurrencies are a highly speculative asset class, regardless if adoption is picking up or not. Sure PayPal is now game, as is Visa and an assortment of others, but the volatile assets have a long road of price discovery ahead.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Although most recent crypto participants only have known “always up” as the direction of the trend, things have recently taken a turn downward.

bitcoin bollinger bands close

bitcoin bollinger bands close


BTC has lost the middle Bollinger Band or 20-week SMA  | Source: BTCUSD on TradingView.com

But is this “the top?” It’s hard to say. One thing for certain, however, is that Bitcoin price has now lost the middle Bollinger Band – also the 20-week SMA.

Passing through the mid-BB in and of itself can be a powerful buy or sell signal.

Related Reading | Bitcoin Dominance Dives To Lowest In Years, Altcoin Season Is Finally Here

However, the fact that during the last bull run Bitcoin weekly never closed below it, it could be a sign that the structure of the bull market has been broken. bitcooin bollinger band zoomed bull

bitcooin bollinger band zoomed bull


Never once was there a meaningful weekly close below the mid-BB  | Source: BTCUSD on TradingView.com

Will Bitcoin Price Snap Back Into A Bull Phase? What To Look For

The Bollinger Bands are a tool created by legendary trader John Bollinger. The tool has a variety of uses, namely measuring the volatility in the price action of assets like Bitcoin.

The technical analysis indicator consists of a 20-session SMA as mentioned, and two standard deviations of that moving average that widen and contract based on volatility.

When they tighten or “squeeze” it can be a sign a massive move is coming. These large moves can begin or continue a trend after a long pause.

bitcoin bollinger bandsThe recent peak has more similarities with 2018 and 2019 than 2017  | Source: BTCUSD on TradingView.com

Bitcoin weekly timeframes have tightened during the recent consolidation phase, and a breakout has started. However, the direction appears to be down according to the middle-Bollinger Band. Passing through the middle-band typically results in several touches of the bottom band to find support.

Like last major “tops” the bottom bands widened to extremes, but when they began to tighten back up, the trend was over. A rounding of the top bands also is a sign of the tools suggesting a break in the bull run.

Related Reading | All About The Bollinger Bands

As for when Bitcoin is ready to turn bullish again, it could be worth waiting for the cryptocurrency to reclaim the middle-BB, which outside of Black Thursday and now, have always been a sign of a bull rally in the making.

With Bitcoin now below the key level, the case for a bear phase, however, is now just as strong.

Featured image from iStockPhotos, Charts from TradingView.com

Source

Tagged : / / / / / / / / / / /

Bitcoin Dominance Dives To Lowest In Years, Altcoin Season Is Finally Here

by NEWSBTC

Bitcoin price was rejected from above $55,000 and is now back to sinking lower. Meanwhile, altcoins like Ethereum continue to climb complete unaffected by the leading cryptocurrency by market cap.

The recent divergence between the top dog and the rest of altcoins, has resulted in Bitcoin dominance taking a nosedive to levels not seen since 2017 and 2018. Could this be the official start of altcoin season before the market cycle starts all over again?

BTC Dominance Returns To Levels Not Seen Since Last Crypto Bull Market

It has been more than 1000 days that have passed since the last time BTC dominance was below the 50% level, signaling that altcoins had taken over the crypto market.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

The past 1000 and then some days have been completely dominated by Bitcoin instead, rising to as high as 73% peak dominance at the end of 2020.

Related Reading | Ethereum Closing In on $2,800 As ETH 2.0 Deposit Contract Hit New ATH

BTC.D, a metric weighing the top cryptocurrency’s market cap against the rest of the space, is now back below 50% and could be ready to set new lows if an altcoin season truly is upon us.

Altcoins capturing much more dominance this time around makes sense, as there are easily several more times the coins that have appeared since, and each market cap individually is ballooning.

bitcoin dominance altcoin season

bitcoin dominance altcoin season


A weekly close below that box starts altcoin season | Source: CRYPTOCAP-BTC.D on TradingView.com

What Altcoin Season Means For Bitcoin, Ethereum, Litecoin, And Other Top Coins

If altcoin season really is here, there are a few things that crypto investors can expect according to past cycles. Altcoin season’s start doesn’t always mean that Bitcoin’s run is over.

During the 2017 bull run, there were two distinct altcoin seasons, with only one ending the historic crypto market cycle. Altcoins topped much after Bitcoin, which is a scenario that could be coming into play now.

Related Reading | The Rise Of Dogecoin: The Good, Bad, And The Ugly

But with Bitcoin still so bullish, just because altcoin season is here doesn’t mean the bull run for BTC is over. Instead, altcoin capital could flow back into BTC, propelling the top brass crypto asset even higher.

Once the coin then tops out for the grand finale cycle peak, another altcoin season could act as exit liquidity before the cycle ends, and it all starts to repeat again.

The biggest and most respected altcoins like Ethereum and Litecoin would run first, then from majors money will flow into mid-caps, and eventually risk will venture into small-caps for moonshot-type gains.

The most important thing is to get out when it looks like things are about to end, as altcoins tend to collapse by as much as 99% when they run out of steam eventually, and momentum turns downward instead.

Featured image from Pixabay, Charts from TradingView.com

Source

Tagged : / / / / / / / / / / / / /

How Bitcoin Dominance Bullish Engulfing Could Signal An End To Altcoin Season

by NEWSBTC

Bitcoin price is diving currently, shaking up the crypto market as a whole. In addition to the correction in the top cryptocurrency by market cap, altcoins have taken an even more severe beating.

With top alts like Ethereum and Litecoin are seeing an even further drop on BTC trading pairs, Bitcoin dominance has formed a bullish engulfing candle just as a key technical indicator reach overheated status. Here’s how that could put an abrupt end to the ongoing altcoin season.

Bitcoin Price Drop Causes Altcoins To Flop

Bitcoin is the first ever cryptocurrency that an entire industry was built from since, and anything that isn’t BTC is considered an altcoin. Ethereum is currently the king of that camp, and is outpacing Bitcoin in performance since its inception.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

But due to first move advantage and just how dominant Bitcoin is, it represents more than 50% of the entire crypto market cap. The BTC dominance metric was created to measure the rest of the crypto market and its weight compared to all altcoins.

Related Reading | Following Bitcoin “Reset,” It’s “Off To The Races Again”

BTC dominance has dropped by 18% since end of 2020 highs, leaving a red streak behind. However, during today’s crypto market bloodbath, the metric began to make a comeback and has formed a bullish engulfing candle.

A bullish engulfing candle is a type of Japanese candlestick formation, that typically suggests a short term reversal is in the coming. It forms when after a sharp bearish move, sellers are overwhelmed by a sudden surge in bullish buying. It is then up to bulls to continue the reversal.

bitcoin dominance btc.d reversal bullish engulfing

bitcoin dominance btc.d reversal bullish engulfing


A bullish engulfing appears as daily RSI reached oversold conditions | Source: CRYPTOCAP-BTC.D on TradingView.com

BTC Dominance Reversal Could Put An End To Alt Season

Coinciding with the bullish engulfing candle pictured above, the daily Relative Strength Index fell sharply into oversold territory. If a reversal plays out in BTC dominance, whatever altcoin season that’s been going on recently, will be over.

Adding more credence to the theory of further reversal in the relationship between Bitcoin and altcoins, on weekly timeframes a hidden bullish divergence has formed, just as BTC.D touches down at the bottom Bollinger Band.

Bitcoin dominance hidden bull div

Bitcoin dominance hidden bull div


A bull div on the RSI has formed as dominance falls to Bollinger Band support | Source: CRYPTOCAP-BTC.D on TradingView.com

Divergences occur when price action moves opposite a technical indicator – in this case the Relative Strength Index again on weekly timeframes. Although daily has fallen into completely oversold levels, weekly either has more to go, or buyers are secretly showing up ready to stage a reversal.

Counter Point | Why Bitcoin Dominance Is No Longer Relevant To Crypto

If bulls can begin the comeback starting with a bullish engulfing today, and close out next week with a powerfully bullish move, a morning star doji pattern will be left on weekly charts, adding yet another signal that an extended reversal could result.

Any reversal in BTC.D, could either have Bitcoin leaving alts in its dust, or the coins crash far further than the top cryptocurrency does on its way back down. All that’s left to do, is wait and see.

Featured image from Deposit Photos, Charts from TradingView.com

Source

Tagged : / / / / / / / / / / / /

Why Bitcoin Dominance Is No Longer Relevant To Crypto

by NEWSBTC

Bitcoin dominance is a metric weighing the top cryptocurrency’s market share against the rest of the crypto space, including Ethereum, Polkadot, Cardano, and other altcoins. For years, analysts used it as a tool to predict divergences between altcoins and Bitcoin.

However, recently, the metric has lost just about all meaning, and could explain why it has done nothing but trend sideways for weeks now on end. Here’s why BTC dominance is no longer a relevant measure in crypto.

Why Bitcoin Remains The Most Dominant Cryptocurrency Today

Years ago, Satoshi Nakamoto designed the first system of peer-to-peer digital cash and the cryptocurrency industry was born. The advent of Bitcoin, also brought with it a revolutionary distributed ledger technology called blockchain.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Bitcoin the asset, secured by cryptography and a consensus mechanism, cannot be duplicated, but the technology it was built on has been adapted in many unique ways since. Ethereum, for example, ties smart contracts to transactions so that decentralized applications can run on the blockchain.

Related Reading | Prepare For Liftoff: Bitcoin Loses Bear Market Trendline Against Altcoins

Thousands of altcoins have since been created that compete for market share with Bitcoin. As the first ever cryptocurrency, BTC enjoyed first-mover advantage and all that comes along with it, including brand recognition, trust, familiarity, and being further along in adoption.

When altcoins gained dominance over Bitcoin in late 2017 and early 2018, the metric became particularly useful for technical analysis and predicting the normally unpredictable relationship between BTC and altcoins.

bitcoin dominance btc d nft altcoins

bitcoin dominance btc d nft altcoins


BTC dominance has been stuck around 60% for weeks on end | Source: CRYPTOCAP-BTC.D on TradingView.com

BTC Dominance: No Longer A Reliable Metric To Measure Crypto

Because altcoins trade against USD and BTC primarily, they don’t always follow the same trends and patterns that Bitcoin does. Analysts had once utilized BTC dominance effectively, but its usefulness has begun to fade. Why? Because digital assets are transcending the definition of what an altcoin is, and BTC dominance cannot keep up with innovation in the market as a metric itself.

What that means is, there’s a sea of coins on decentralized exchanges, an explosion of NFTs, and several other blockchain-based assets that aren’t included in the popular metric.

Related Reading | Why March Is The Bloodiest Month In Bitcoin History

The best example of dominance losing its importance, is due to the fact that altcoins have been performing so well, beating Bitcoin in ROI across most of the asset class, yet the metric remains firm at around 60% where it has now spent several weeks consolidating.

An explosive move could result due to such lengthy consolidation, however, what could instead be happening is the measure losing any remaining usefulness as a tool to gauge crypto market trends.

Featured image from Deposit Photos, Charts from TradingView.com

Source

Tagged : / / / / / / / / / / /

Prepare For Liftoff: Bitcoin Loses Bear Market Trendline Against Altcoins

by NEWSBTC

Aside from a few rare outliers, over the last several years, owning Bitcoin has been the better investment compared to other cryptocurrencies. Altcoins like Ethereum and others have only recently caught up, and BTC dominance has maintained the lion’s share of the crypto market cap.

However, dominance has lost an important trendline dating back four full years to the peak of the last bull market, and it could suggest a major turnaround is about to occur across the crypto market. Could this be the altcoin season crypto investors have been waiting for?

Bitcoin Dominance Loses Crucial Bear Market Trendline

At peak Bitcoin fever in 2017, interest turned to altcoins that were much cheaper per coin by comparison as investors searched for the next BTC.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Related Reading | Five Signs That Say Altcoin Season Hasn’t Even Started Yet

Those investors ended up learning the hard way that there is no replacement for Bitcoin. Altcoins plunged by as much as 99% in most instances, while Bitcoin wiped out only 84% of its gains by comparison. Both scenarios are now far in the rear view, and since then Bitcoin has a commanding lead.

bitcoin dominance altcoin season

bitcoin dominance altcoin season


BTC dominance has lost an important monthly trendline dating back to the top of the last bull market | CRYPTOCAP-BTC.D on TradingView.com

At the height of that fever, dominance reached as low as 35%, but has since remained around or above 63%. That key level was lost at the same time a pivotal trendline was, and now there could be no over-performance in Bitcoin for the next year or more.

The trendline in question dates back four years to the bull market peak, and has kept dominance supported ever since.

Altcoins Are Ready To Explode If Dominance Dives Further

Bitcoin dominance holds the key to unlocking the true potential of any altcoin season, which thus far the leading cryptocurrency by market cap has kept locked away for many years now.

bitcoin dominance altcoin season 2

bitcoin dominance altcoin season 2


A zoomed in view shows how many times BTC dominance tried to reclaim the line | CRYPTOCAP-BTC.D on TradingView.com

Losing the previous long term trendline resulted in some short term consolidation followed by a large move lower. A bearish retest of 70% BTC dominance failed, sending the important crypto market metric falling back lower to the second ascending trendline.

Related Reading | Altcoin Season Is Here: “Buy Crypto” Surpases Bitcoin Searches On Google

With the 63% level now lost also, BTC dominance should gravitate toward the mid-50% range, allowing altcoins to soar compared to Bitcoin for an extended period of time.

Altcoins could also theoretically hold up better in a wider correction, but that scenario is unlikely as the riskier assets typically are more volatile and react more sensitively to greater crypto market selloffs.

Featured image from Deposit Photos, Charts from TradingView.com

Source

Tagged : / / / / / / / / / /

Here’s The Line Separating Bitcoin Dominance From Altcoin Season

by NEWSBTC

For months, Bitcoin stole the show when it came to crypto, sucking the capital out of the altcoin market. Shortly after the top cryptocurrency started its pullback, profits began to flow back into altcoins that have since been soaring over the last month.

BTC dominance shows how down to the wire the fight between Bitcoin and altcoins has become. Just one line is left separating a continued surge into full-blown alt season, or the top cryptocurrency approaching total dominance.

BTC Dominance Hovers At Two-Thirds Market Share

Once upon a time, there was only one: Bitcoin. From Satoshi Nakamoto’s vision of a better form of digital money came vast digital universe filled with altcoins serving a variety of purposes.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Cryptocurrencies are no longer just currencies; they are the building blocks of decentralized finance, a way to keep transactions private, and much more.

Bitcoin itself is still considered an experiment, but that stigma is disappearing by the day as institutions buy into the scarce asset as a safe haven. Altcoins, sans a few with present day utility, are still far more speculative, illiquid, volatile, and risky.

Related Reading | A Dangerous Technical Pattern In Bitcoin Is Back, And It Is Breaking Down

When Bitcoin and altcoins exploded into public view in 2017, the first-ever cryptocurrency’s longevity and adoption helped it weather the top crypto winter far better. From top to bottom, it fell 84%, but by comparison, altcoins dropped much further.

When this all happened, Bitcoin went from being the only kid on the block, to representing only 35% of the entire market share. But since then, altcoins have been in a downtrend against Bitcoin that is reaching a pivotal moment. And it’s all resting on just one line.

btc.d bitcoin dominance altcoin season

btc.d bitcoin dominance altcoin season


BTC.D is resting on a clearly important line | Source: CRYPTOCAP-BTC.D on TradingView.com

What Comes Next? Altcoin Season, Or Total Bitcoin Dominance?

Intraday price action matters, but the higher the timeframe, the more dominant a chart’s signals. Even BTC.D, a measure of Bitcoin’s dominance against all other altcoins, behave in this manner.

BTC.D is currently resting on almost exactly two-thirds dominance. The line on monthly timeframes highlights why the level is so important.

Related Reading | Altcoin Expert: Buy Crypto That Holds Up During Bitcoin Breakdown

The zone first acted as resistance after Bitcoin topped in 2017, and again in 2019. Support couldn’t hold, but dominance broke back through, and is now retesting the clearly critical line as support once again.

If dominance holds, we could soon see a future of total Bitcoin dominance, reaching levels of 80% or more. If support can’t hold, another, more profitable altcoin season is the likely result.

Whichever direction is chosen will dramatically alter the market share of cryptocurrencies for the foreseeable future.

Featured image from Deposit Photos, Charts from TradingView.com

Source

Tagged : / / / / / / / / / / / /
Bitcoin (BTC) $ 26,468.09 0.70%
Ethereum (ETH) $ 1,845.34 0.80%
Litecoin (LTC) $ 88.14 1.67%
Bitcoin Cash (BCH) $ 111.85 0.20%