Bitcoin dominance has been plummeting recently letting altcoins have their time in the crypto market spotlight for a change. But as altcoins begin to correct, BTC dominance is signaling that the asset is about to recover from the altcoin market’s rally against it.
What does this mean for Bitcoin, and how will certain altcoins withstand the coming blow to their market share from BTC dominance?
BTC Dominance Signals Buy, Potential Bull Flag Formation Could Wreck Alts
BTC dominance is a metric that weighs the first-ever cryptocurrency against the rest of the market. Because it started off the entire industry and has first-mover advantage, it commands the lion’s share of market capitalization.
Currently, Bitcoin’s dominance rests somewhere near 62%, after setting a high last year in September at 73%.
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The rise to 73% in 2019 crushed altcoins, taking many of them down to as much as 90% or less on their BTC ratios. Prior to that, however, altcoins ballooned during the peak crypto bubble, where BTC dominance fell to as low as 35%.
Lately, altcoins have finally been recovering against the first-ever cryptocurrency, thanks largely due to the unstoppable DeFi trend and Chainlink setting new all-time highs.
But any altcoin season taking place across the crypto space over the last several weeks could very well be coming to an end already.
BTC Dominance Weekly TD Sequential 9 Buy Setup | Source: TradingView
According to the TD Sequential indicator on weekly
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