Bitcoin Dominance Indicating An Alt Season
We have Seen btc.d break a huge 2.5 year trend. This trend change indicates that bitcoin dominance will significantly come down meaning:
Bitcoin consolidates & Alts out perform
Bitcoin sells off and Alts preserve purchasing power better then bitcoin
Bitcoin rises and Alts significantly outperform
I think we need to take into account where bitcoin is. There is low volume around 8-10k range we have established and some volume will come and it will be strong. However, this could take some time, so a consolidation over the next few months in the lead up to the US presidential election (especially between July-August) makes absolute sense. In the meantime we can see alts rally significantly in my humble opinion makes sense.
Looking at the dominance chart, a break back into the dominance channel would invalidate this idea, and we can expect alts to bleed out completely over the next few months.
However, staying under would indicate that dominance will come down significantly and alts will outperform Bitcoin to the point where I think many will be shocked, and some will feel a sense of euphoria. This does not change our analysis on Bitcoin and we are still expecting prices to come down significantly over the coming 18 months. Is this key indicator one of the early indicators of a multiweek / multimonth alt season? I'm long and strong alts.
Bitcoin consolidates & Alts out perform
Bitcoin sells off and Alts preserve purchasing power better then bitcoin
Bitcoin rises and Alts significantly outperform
I think we need to take into account where bitcoin is. There is low volume around 8-10k range we have established and some volume will come and it will be strong. However, this could take some time, so a consolidation over the next few months in the lead up to the US presidential election (especially between July-August) makes absolute sense. In the meantime we can see alts rally significantly in my humble opinion makes sense.
Looking at the dominance chart, a break back into the dominance channel would invalidate this idea, and we can expect alts to bleed out completely over the next few months.
However, staying under would indicate that dominance will come down significantly and alts will outperform Bitcoin to the point where I think many will be shocked, and some will feel a sense of euphoria. This does not change our analysis on Bitcoin and we are still expecting prices to come down significantly over the coming 18 months. Is this key indicator one of the early indicators of a multiweek / multimonth alt season? I'm long and strong alts.