Why Bitcoin Dominance Could Submit To Altcoin Season Several Months Longer
August 30 2021 - 4:00PM
NEWSBTC
Bitcoin price is struggling to break through resistance at $50,000,
and it could partially be altcoins to blame for the weakness. The
most recent technical structure on the highest time frames suggests
that not only could alts continue to gain against BTC dominance,
altcoin season itself could last a while longer. Bitcoin Dominance
And Technical Analysis Using The Metric Technical analysis is a
subjective art. The practice has enough naysayers as is, but even
those that subscribe to the study don’t always believe that all
charts are created equally. For example, there are several industry
vets that do not believe BTC dominance – a metric that weighs
Bitcoin against the rest of the crypto space in terms of market
share – has value as part of crypto analysis. Related Reading |
Total Crypto Market Cap Reenters Monthly RSI Bull Zone If Ethereum
outperforms Bitcoin, for example, dominance might dip as a result.
The magnitude of this is enhanced further due to the sheer volume
of unique altcoins that exist today. Some even argue that the
metric itself was once useful, but less so due to dominance not
including the vast world of NFTs or the constant sea of new DeFi
projects springing up. For those that are believers, the recent
altcoin season could have been predicted with some degree of
accuracy. And if the metric continues to hold weight, altcoin
season might have another few months left. Could altcoins beat
Bitcoin at its own game a while longer? | Source: CRYPTOCAP-BTC.D
on TradingView.com Why Altcoins Season Could Last Several Months
Longer BTC dominance has established a massive trading range
between 70% and 38% dominance. While altcoin sentiment was at its
worst compared to Bitcoin, the range failed to break to the upside,
resulting in a swing to the lower boundary of the trading range.
BTC.D stopped short of touching the previous bottom, but is
following a pattern from the last cycle that suggests not only will
the lower boundary be touched, lows will be swept and perhaps a new
range reached. Related Reading | New To Bitcoin? Learn To Trade
Crypto With The NewsBTC Trading Course Technicals also support a
fall into the bear zone – or oversold levels – on the Relative
Strength Index. The total crypto market cap has also reentered the
bull zone on the RSI, all while Bitcoin struggles with resistance.
The LMACD is still fully red on the histogram and not nearly at the
depths, lengths, or oversold levels as the last market cycle. All
of the signals combined suggest that altcoins are likely to
outperform Bitcoin for another few months. A monthly candle close
below the trading range highlighted in the chart above might be the
exit signal that altcoin season is over, and putting any crypto
capital back into BTC might become the more profitable venture
again. Before it happens, there could be extreme volatility on the
dominance chart in a battle that’s brewing between Bitcoin and
altcoins. Follow @TonySpilotroBTC on Twitter or via the
TonyTradesBTC Telegram. Content is educational and should not
be considered investment advice. Featured image from
iStockPhoto, Charts from TradingView.com
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