Altcoins still have tons of catching up to do against their big brother Bitcoin. The cryptocurrency currently enjoys an over 65% market share dominance over the rest of the space.
However, that number is set to fall hard, after a strong rejection on BTC.D charts has potentially confirmed a bear flag pattern. The target of the pattern would take the metric down to 59%, just a tick above where alt season lies.
Bitcoin’s First Mover Advantage Keeps Throne In Tact
Bitcoin is the first-ever cryptocurrency. Due to its first-mover advantage and lead in the market, it has long dominated the industry. Years, ago, BTC dominance was untouchable at well above 90% of the market.
But in early 2017, BTC dominance started an extended and powerful downtrend that took to as low as 35%. During this time, altcoins like Ethereum and XRP had five-digit percentage returns. Other, smaller-cap altcoins performed even better.
Life-changing wealth was generated, and a modern-day gold rush occurred. Retail investors FOMOed into altcoins without understanding what they were or used for. Bitcoin ballooned to $20,000, while Ethereum reached over $1,400 and Ripple over $3.50 per token.
RELATED READING | BITCOIN SEES THIRD LOWEST VOLATILITY SINCE THE CRYPTO BUBBLE FIRST BEGAN
Capital was flowing all through the crypto market, but altcoins had captured an enormous amount of market share from Bitcoin.
Since that bottom in BTC dominance was hit, however, altcoins have been in a steady downtrend that’s wiped out over 90% of their gains in most cases. While there are a few outliers in the market that perform regardless of Bitcoin, most suffer at the hands of BTC.
Bitcoin Dominance (BTC.D) Daily | Source: TradingView
Altcoins May Finally Recover If BTC Dominance Bear Flag Target Is Reached
Altcoins may soon get a sizable chunk of dominance back, as the latest price action in BTC.D shows a firm rejection of former support turned resistance.
This support level that’s now acting as strong resistance is the bottom trend line on a multi-month bear flag.
Bitcoin Dominance (BTC.D) Daily | Source: TradingView
Bear flag formation targets are measured by taking the flag pole and applying it to the breakout. The target of this structure would be somewhere around 59% dominance.
RELATED READING | ‘NOT AN ASSET CLASS’ BITCOIN SPIKED BY 100,000,000% SINCE 2011
Zooming out on weekly timeframes, the fall will take BTC.D to a pivotal level where a longer-term decision will be made.
Bitcoin Dominance (BTC.D) Weekly | Source: TradingView
Below the 58% level on BTC.D charts may lead to an extended altcoin season. An altcoin season is a duration of time, much like early 2017, when altcoins significantly outperform Bitcoin.
Altcoins make up most of their gains during these explosive movements. But they only occur when BTC.D is falling.
If BTC.D finds support at 59% and holds, altcoins may be in for further reckoning as Bitcoin eats up even more market share in the months ahead.
Featured image from Shutterstock.
Charts from TradingView. origin »
Like Bitcoin and other altcoins, Ethereum has been flirting with collapse over the past few weeks. After a strong rejection at the $250 resistance, the cryptocurrency has found itself stuck in a consolidation that has seen ETH slide to $228 as of the time of this article’s writing.
The aggregated crypto market has incurred some intense upwards momentum today, allowing major altcoins like XRP to post notable gains This latest upswing comes shortly after the cryptocurrency incurred a rally independent of the market yesterday It is important to note that XRP has faced a notable rejection against its Bitcoin trading pair, forcing it to remain beneath a key trendline Although XRP has been fully exposed to the downside seen by the aggregated crypto […]
After facing an intense selloff yesterday that led Bitcoin, Ethereum, and virtually all other major altcoins to post some intense losses, the aggregated market has been able to recover slightly today, being led higher by BTC.
Today has been a bloodbath for the crypto market, with Bitcoin’s recent rejection at $10,000 leading most major altcoins to reel lower, with many posting sizable losses of 10% or more. This intense selloff may be a prime buying opportunity for a select few altcoins that have seen incredibly bullish price action throughout 2020, with...
Overnight, Bitcoin faced a firm rejection after attempting to garner significantly further upwards momentum. This instantly led major altcoins like XRP and Ethereum to drop in tandem, shinning a light on some potential underlying weakness within the crypto markets.
EOS, like most major altcoins, is currently caught in a short-term downtrend that has come about as a result of Bitcoin’s recent rejection at $8,400. It, however, still remains in a firm uptrend while looking at its 30-day price action, and technical analysis may suggest that it is primed for significantly further bullishness.
The cryptocurrency market continues to creep sideways like Wile E. Coyote on the trail of a wabbit, across a varied landscape of gains, losses, and the occasional ACME anvil in the form of another possible ETF rejection.
Overly, market participants are apprehensive and after 11 months of straight losses, traders are cautious to commit until clear bull signals print. Stellar Lumens look likely to expand thanks to rejection of lower lows below 15 cents.
Through Litecoin core 0. 17, end users will enjoy cheaper transactions as Tron work towards a point of sale system via their incentivizing TronCard Beta. Overly, the market is vibrant. And after months of lower lows, the rejection of lower lows is important for investors keen on reversing steep losses.
A correction is underway in IOTA and TRX price charts following bull break out above important resistance levels a few days ago. Still, we retain a bullish outlook recommending buyers to buy on dips as long as prices are trading above key support levels.
It is an across the board altcoins erosion with EOS registering a five percent drop yesterday. While there are hopes for buyers, we need to see rejection of lower lows especially in IOTA, EOS and XLM which is technically bullish.
FOMO Moments Markets are back in the red; Polymath is pumping but Cardano, EOS and Stellar are getting hammered. The bears have regained control of crypto markets and the selloff has accelerated today.
As reported by NewsBTC on Thursday, the U. S. SEC rejected a revised proposal for a Bitcoin ETF backed by the Winklevoss Twins. The market immediately took a dive, with Bitcoin and a majority of altcoins posting 4-5% losses on the day.
From the charts, it’s likely that EOS, Litecoin, IOTA and even Tron buyers will continue with their upward trajectory after yesterday’s rejection of lower lows. It’s important to note that this injection of buy momentum happened right at key support lines.
Bitcoin fell off and bumped its head after strong rejection at $7,684. Bitcoin price analysis, however, shows that former resistance levels are now serving as strong supports as BTC consolidates and prepares for the next leg up.
Bitcoin price failed to recover above $107,000. BTC is trimming gains and might could continue to move down if it trades below $102,500. Bitcoin started a fresh decline after it failed to clear $107,000.
Square, the payment services arm of Block, has launched its Bitcoin payment feature for small businesses, allowing them to accept BTC payments and manage their digital assets alongside traditional finances through its point-of-sale platform.
Eric Trump, son of US President Donald Trump and executive vice president of the Trump Organization, has revealed new bullish predictions for Bitcoin (BTC).
Bitcoin price is attempting to recover above $103,500. BTC could continue to move up if it clears the $106,500 resistance zone. Bitcoin started a decent recovery wave above the $103,500 support. The price is trading above $104,500 and the 100 hourly Simple moving average.
Bitcoin price is struggling below $105,000. BTC could continue to move down if it stays below the $104,200 resistance. Bitcoin started a fresh decline below the $104,000 support. The price is trading below $104,000 and the 100 hourly Simple moving average.
