Over the last few weeks, Bitcoin has been rising without pause, absorbing all of the capital out of the crypto market and causing altcoins to bleed on BTC pairs.
BTC dominance finds itself at a crucial resistance level, and some of the brightest and best crypto analysts in the community, are divided over the future of altcoins. Here’s what they are saying, and what to expect in the short-term in the always unusual relationship between Bitcoin and alts.
BTC Dominance Reaches Long-Term Resistance, Fireworks Expected To Finish
Bitcoin was the first cryptocurrency to be created, and due to this, it enjoys all the first-mover advantage benefits that come along with it. It has the widest adoption and regulatory acceptance, and the largest chunk of the cryptocurrency market share.
BTC dominance is a metric weighing the top crypto’s market cap against the entire altcoin space, and it shows that Bitcoin commands as much as 66% of the overall capital invested into the thousands of coins across the crypto market.
The TD Sequential 9 sell setup works reliably on BTC dominance | Source: CRYPTOCAP-BTC.D on TradingView.com
Some analysts swear by charting BTC dominance to discover divergences in the relationship between Bitcoin and altcoins, while others claim it is useless. However, if it isn’t valuable for technical analysis, then it is strange it responds so well to support and resistance levels and other common chart signals, as evident in the chart above.
Related Reading | Altcoins Reach Pivotal Crossroads, Fate Of Crypto Hangs In The Balance
The TD Sequential indicator also works well on BTC.D weekly timeframes, giving the value of timing BTC pairs using the metric added credence. In the past, it acted as an almost flawless sell setup, calling nearly every top in BTC dominance except one on the weekly scale.
As for last night’s candle open, an “imperfect” 9 sell setup has appeared. A rise to over 66.5% dominance before the end…