Capitulation

The outflow of money from Altcoin to Bitcoin is so significant that it levels out the capitalization growth, a very rare phenomenon that we are seeing right now. The market is capitulating from Altcoin to Bitcoin: people are frightened, they see Alta convulsing, renewing lows to the Bitcoin pair. A significant rise in the price of Bitcoin is pushing market participants to exchange previously purchased altcoins for expensive bitcoin.

What is happening with Altcoins now is what happened with Bitcoin not so long ago: on the price spill to $15500, people were exchanging cheap Bitcoins for dollars in panic and fear, and now they are exchanging cheap Altcoins, for expensive Bitcoin. The market always grows through a shakeout: updating the bottom, collecting liquidity, and only then increasing the price.

In past cycles, we have repeatedly seen smart money go into Bitcoin first, and only at the end of its cycle has money rapidly started flowing from Bitcoin to Altcoins. Below is a chart of the total market capitalization of 2021, and it shows two rectangles, one in red and one in green. The green color starts where the overflow of expensive Bitcoin into cheap Altcoins begins (the trend is in favor of Altcoins). Both in 2017 and in 2021, Altcoins are showing growth at the end of Bitcoin's rise.

Disbalance

On the left side is a graph of total market capitalization, and on the right side is the market capitalization of bitcoin itself. Bitcoin capitalization has grown significantly, but the total market capitalization stands still. This imbalance, happens very rarely and now it is caused by the capitulation from Altcoin to expensive bitcoin. People are fleeing "from cheap altcoins to expensive bitcoins," exchanging altcoins at a loss to themselves. This is what I expected before the rise of Altcoins (changing hands-coins go from weak to strong).

Also worth looking at Bitcoin's dominance index: we're almost at the upper end of the trend change block

FOMO

The fomo is starting! Price has entered a range where selling will prevail. After the price, within the medium-term trend, reaches the target (red block), the distribution and bitcoin and altcoin growth will begin. Bitcoin is strong now, but limited growth potential in 2023, the maximum where it can descend is a mark: $ 36-38000, the last time Bitcoin was worth so much at the time of closing of the participants in the market After a technical rebound!

Above that level I don't expect Bitcoin this year. Whatever the market is, before going into a bull market, the market will shake out, accumulate. There is just a rebound in the market right now, after a long decline.