Problem for altcoins? Bitcoin dominance could rise in the next few days
Bitcoin is the very first cryptocurrency modeled on all other altcoins, with many of them offering additional benefits beyond what the original cryptocurrency has to offer.
Altcoins have recently far outperformed Bitcoin in what cryptanalysts call “old season,” but it could all come to a surprising end if the strong signal of Bitcoin dominance is confirmed.
Alt Season already over when Bitcoin dominance breaks out of the falling wedge formation
Bitcoin has the greatest awareness, the largest market capitalization and is the most commonly used cryptocurrency in on-chain transactions. Often it is Bitcoin that dictates the bigger trend in the crypto market, while altcoins like Ethereum, Litecoin and XRP are number one.
Occasionally, altcoins begin to outperform Bitcoin over a longer period of time, which cryptanalysts call “old season”. Since the beginning of the year 2020, the altcoins have risen sharply, which has contributed to Bitcoin also rising higher from local lows is.
The rise in altcoins has caused Bitcoin's dominance to peak in recent weeks by 72% has decreased to 64%. But BTC dominance – a measure that Bitcoin has in relation to the other altcoins in the crypto market – has created a falling wedge, which suggests that altcoins will experience a significant decline against bitcoin in the coming days.
Whether this indicates that Bitcoin is back via 10. 00 $ 0 will explode and capital from alts to bitcoin, or whether the entire market collapses with altcoins falling even more, remains to be seen.
The falling wedge – typically a bullish structure – is also accompanied by a massive bullish divergence in the MACD. Divergences occur when the values of an indicator move in the opposite direction to the price movement and can be a strong signal for further development. A breakout from the falling wedge could result in a further rise to a high of 70% dominance.
Proof of text: newsbtc