Bitcoin VS Altcoins Domination
Let's start with definitions. ;)
Domination: Bitcoin dominance is the ratio of the largest cryptocurrency's value to the overall market capitalization of digital assets.
BTC dominance is an index that was calculated by deviding BTC capitalization to whole crypto market capitalization, so characterizing the impact of BTC on the entire crypto market.
Major consensum believes that 50% is a key value of this index, if BTC dominance is over 50% there will be hard time on market for Altcoins and vice-versa. The term "Altcoins" refers to all cryptocurrencies other than Bitcoin.
Technical Analysis
It's good to check Bitcoin and Altcoin dominance periodically. I use Weekly or Montly chart for BTC.D.
https://www.tradingview.com/x/Y3oU8bTg/
BTC dominance (BTC.D) has been dropped from 60 to 50 since the end of March.
This means that Alternative crypto coins are dominating the crypto market, when investors investing on them bringing about an Altseason, which is a time when Altcoins outperform Bitcoin in price performance.
From a strictly technical standpoint BTC.D just closed a Head & Should started in 2018.
We had two good Bitcoin season since 2019, so I'll monitor the RSI indicator, that it's oversold now, when it will get back momentum to break his down trendline.
Historically the 2017 decline in Bitcoin dominance lasted 10 months, there could be good chance it will happen again.
In this case we still have two Altseasons ahead (2nd e 3rd downtrend Waves in 5-waves cycle). Ending to see BTC.D values like at the start of 2018.
It is worth preparing for this scenario and taking advantage of its potential.
Let's work together! 👁️👁️
Do you use BTC Dominance and Alseason cycles in your analysis?
How do you charting BTC.D? And whitch time-frame do you use?
Write your feedback in the Comments, Thanks.
⚠️ Disclosure ⚠️ I wrote this article myself, and it expresses my own opinions. Above ideas is for educational purpose only, it is not intended to be investment advice.
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