Bitcoin is up over 70% year to date and its recent break through resistance at $10,000 helped propel altcoins toward even stronger ROI. Several altcoins are up well over a few hundred percent, beating out the first-ever cryptocurrency by a wide margin.

This all could soon reverse according to a handful of signals on BTC dominance charts, causing Bitcoin to vastly outperform the rest of the crypto market.

Bitcoin is the first-ever cryptocurrency and anything that came after it is considered an altcoin, or a stablecoin. Stablecoins are backed 1:1 by USD or another fiat currency and assets to ensure stable prices with limited fluctuation. Altcoins can be just about anything, with some designed for smart contracts, others as payment tokens, and several as nothing more than worthless coins to speculate over.

These different types of crypto assets often have an inverse or correlated relationship, depending on market conditions.

For example, in 2019 when Bitcoin rallied to $14,000 – potentially its next target above current levels – altcoins were decimated in its wake. This year, however, altcoins are soaring, helping to carry Bitcoin higher. Together, the two asset types are pumping, yet Bitcoin dominance has been falling.

Related Reading | Easy Money? Coinbase Crypto Coins Grow Over 50% On Average In August

BTC dominance has fallen to 60%, a level that hasn’t be reached in well over a year – before Bitcoin’s bull rally last year that crushed alts into dust.

Altcoins have been making significant recoveries, not only in USD but against BTC. However, after altcoins have spent several months now beating out Bitcoin, dominance metrics are hinting at a sharp reversal that will let the king of crypto catch up against the rest of the market.

On daily BTC dominance price charts, a TD 9 buy setup has appeared. The TD Sequential indicator designed by Thomas Demark is one of the most reliable in the crypto market. The same indicator called the top in dominance, sparking the extended altcoin season that may be coming to an end. It is only appropriate that the opposite signal also calls the bottom.

Related Reading | Be Fearful: Crypto Market Greed Reaches Second Highest Point In History

After the 9 sell signal, BTC dominance dropped over 13% to current levels. Coinciding with the accurate sell signal, BTC.D appears to be forming a falling wedge pattern. Further adding credence to the possibility of a reversal, the Relative Strength Index is showing a strong bullish divergence.

Technical analysis is never a guarantee of future results, but can be a tool to assist traders, investors, and analysts with predicting the highest probability outcome. Together, a TD 9 buy setup, and a bullish wedge and matching divergence on the RSI, a reversal is becoming more probable by the day.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

260 +