Bitcoin Dominance analysis : Is an alt season over?
The cryptocurrency market is witnessing a correction for the last 48 hours, Bitcoin price had dropped from 10500$ to 9700$, and Major cap altcoins like XRP,ETH, LTC and EOS saw an average drop of over 15% in last 48 hours. Cryptocurrency market cap lost 30B$ value in past 48 hours, while Bitcoin dominance saw an increase of 5%.
Now the question is?
Is it a normal correction for altcoins, or Season is over? To find the answer, we will look into Bitcoin Dominance Technicals.
Findings based on Daily Timeframe chart
BTC.D broke down from a Major trendline last week, which hold the BTC.D above this support for 10 months.
BTC.D bounced back from support at 62%, from which BTC.D had bounced in July’19, after that Altcoins started dropping to new lows.
Bitcoin dominance retested Trendline neckline support yesterday, and currently trading below that.
Opinion
Altcoins can recover quick, and push for another bullish wave only if Bitcoin dominance stays below 65-66% – which is also a trendline neckline support. In that case, Bitcoin dominance could drop below 58% in next few days.
If BTC.D manages to stay above 66%, then there is a more than 50% chances that – altcoins can continue drop against bitcoin till Bitcoin Halving.
Check out our long term Bitcoin Price analysis -
https://itsblockchain.com/bitcoin-price-prediction-can-hit-75000-in-2021/
Now the question is?
Is it a normal correction for altcoins, or Season is over? To find the answer, we will look into Bitcoin Dominance Technicals.
Findings based on Daily Timeframe chart
BTC.D broke down from a Major trendline last week, which hold the BTC.D above this support for 10 months.
BTC.D bounced back from support at 62%, from which BTC.D had bounced in July’19, after that Altcoins started dropping to new lows.
Bitcoin dominance retested Trendline neckline support yesterday, and currently trading below that.
Opinion
Altcoins can recover quick, and push for another bullish wave only if Bitcoin dominance stays below 65-66% – which is also a trendline neckline support. In that case, Bitcoin dominance could drop below 58% in next few days.
If BTC.D manages to stay above 66%, then there is a more than 50% chances that – altcoins can continue drop against bitcoin till Bitcoin Halving.
Check out our long term Bitcoin Price analysis -
https://itsblockchain.com/bitcoin-price-prediction-can-hit-75000-in-2021/
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