BTC Dominance in consolidation. Altseason will have to wait.

Updated

As you can see in the chart, dominance is showing a pennant flag consolidation pattern. This might give some relief to the altcoins that are bleeding, but unfortunately, this pattern is a bullish one, and dominance could grow up to 57% before having a pullback.

Do your own research (DYOR). I hope I am wrong since I own a lot of altcoins, but that is what I see in the chart.

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Everything is following the play, the BTC dominance pumped over the resistance line and made it a support.

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As a rule, remember that always dumps less than altcoins. So when MT.Gox sells their 190k , whales know that BTC will drop by -5% to -10%, but altcoins will drop by -30%. Bitcoin dominance grows because people either sell and keep their funds in USDT (causing USDT dominance to grow) or move their funds into to avoid the painful altcoin drop.

However, when the market recovers, altcoins can gain +30% or more, which is when investors buy back their altcoins at a low price and make more profits. During the recovery, and dominance decrease.

This phenomenon exacerbates the altcoin dump, making it harder to endure. But knowing this, investors should not be worried about a sudden drop in total market capitalization, as it is temporary and just a normal money fluctuation.

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This idea is playing out as forecasted. Now we should get a bounce down, and altcoins should recover.

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Finally, dominance is falling. Let see if it continues. Hopefully it will help some good altcoins to restore confidence to their investors.
All is moving according to the plan. An invalidation would be pumping over %56 again from where it is now.

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So far so good! The chart is following my expectation. Now let see if we get a rejection. That would be awesome for the altcoin and will confirm my prediction.

CryptoNikkoid

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