Bitcoin Dominance And Altcoin Season 2.0


In this episode of NewsBTC’s Daily Technical Analysis VideosAnd the We’ll take a look at Bitcoin’s dominance and potential signs of the sudden altcoin season developing during the overall bearish background.

See the video below:

Video: Bitcoin (BTC.D) Dominance Analysis: September 7, 2022

For today’s video, we’ll take a look at Bitcoin’s dominance on the monthly and weekly timeframes. It’s possible that a noticeable breakdown in progress that – based on its significance – could tell us something bigger: possible altcoin season Nobody expects it.

Bitcoin dominance to present to Altcoins

Altcoins usually only perform well during a bull market. So BTC.D crashes are very unusual considering current macro background.

However, the dominance of BTC is collapsing from a diagonal trend line over the price and RSI. The LMACD also clearly shows a struggle between bulls and bears. Or more precisely, Bitcoin versus altcoins, where altcoins are currently leading.

BTC.D_2022-09-07_13-00-56

Is an altcoin season about to appear? | Source: CRYPTOCAP-BTC.D on TradingView.com

The signal is back from the last alternate season

Moving on to the weekly timeframes for bitcoin dominance, the trend lines become more and more obvious. The price is breaking down from the very important horizontal and diagonal support. Comparing the previous cycle, we can see a similar setup where a dominance can lead to a lower low, while the RSI forms a higher low and bullish divergence.

per week IchimokuBitcoin’s dominance is denied by the cloud. The last time the price fell from the cloud, BTC captured a dominance of 70% to where we are currently at around 39% of the market share.

BTC.D_2022-09-07_13-03-20

Will we get a repeat of the last altcoin season? | Source: CRYPTOCAP-BTC.D on TradingView.com

Related reading: WATCH: Bitcoin Weekend: Will the Dead Crypto Return? BTCUSD Sep 2, 2022

Could this be a potential crypto market share target?

So where, then, might our target be in terms of new identified declines in bitcoin dominance? One potential area is another retest of the neckline resistance-turned-support from the last bottom formation – a Inverted head and shoulders. Target BTC.D will take about 32% of dominance.

BTC.D_2022-09-07_13-04-14

Could 32% dominance be the potential target? | Source: CRYPTOCAP-BTC.D on TradingView.com

How Merge and Ethereum Can Affect BTC.D

To illustrate why this setup worked, we turned BTC.D on its head and compared it to ETHBTC. The primary factor driving the historic altcoin season is the Ethereum consolidation.

In the chart below, we can see that Ethereum is largely responsible for shaping the current Bitcoin dominance chart. This makes sense considering that Ethereum is the second largest cryptocurrency by market capitalization and has the biggest influence on it Measure outside of bitcoin itself.

BTC.D_2022-09-07_13-08-53

Bitcoin dominance is driven heavily by the ETHBTC pair | Source: CRYPTOCAP-BTC.D on TradingView.com

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Featured image from iStockPhoto, Charts from TradingView.com





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