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Over the past two weeks, bullish sentiment has returned to the crypto market. However, it is not the Bitcoin (BTC) that makes the agitation, it is the possible season for the altcoins which interests again the traders, the analysts and the investors.
Most of the altcoin market has seen a big spike in comparison to its counterpart Bitcoin and, according to the BTC's dominance charts, a break below the current dominance could explode the altcoins market while Bitcoin remains relatively dormant .
If Bitcoin's dominance breaks down, Altcoins should soar
It is undeniable that the cryptography market is at a critical stage for now. The total market capitalization of crypto is breaking with downside resistance, and traders around the world are confident that the season of altcoins is approaching. Even Google Trends suggests that this is true, because of the growing interest shown by the crypto brothers of Bitcoin.
Related reading | Crypto Comeback: a simple table proves that the Altcoin season is upon us
While the price charts of different altcoins compared to BTC clearly show that there is currently more interest for buyers, BTC's dominance has remained relatively stable even since August 2018, when Bitcoin started its own rally regardless of altcoins .
The total market bursts slowly with the increase in volume pic.twitter.com/AqtQ4PKFAB
– Crypto_Ed_NL (@Crypto_Ed_NL) March 15, 2019
However, according to several cryptographic analysts, BTC's dominance rests on support after repeated attempts and could collapse significantly. The chronology of the altcoin season is in addition to that of this theory, as is the total downward resistance to the downward trend in the market capitalization of the cryptographic market.
Sweat pic.twitter.com/mfHPH1Bx4P
– Livercoin (@livercoin) March 15, 2019
The recipe for a full season in altcoins seems to be ready, but it's just waiting for the very first cryptocurrency to mix the ingredients. It is interesting to note that current market conditions look very similar to the previous bear market trough cycle, where altcoins like Litecoin have started to recover significantly from the BTC. Meanwhile, Bitcoins remained relatively stable, while altcoins soared.
$ ltc sure $ btc – what do you see? pic.twitter.com/HavAhtWTUS
– Polar hunting (@polar_hunt) March 14, 2019
Some traders believe that the next bitcoin rally is often due to the fact that traders benefit from alts via BTC trading.
What happens if the domination of Bitcoin rebounds?
Bitcoin is also at a critical point. The price is close to the resistance to overhead that has proved too difficult to obtain in 2019 so far. Each discharge was less severe in 2019, and if Bitcoin returned to its current price of about $ 3,900, overhead resistance would be eliminated and an additional recovery of $ 4,500 to $ 5,000 could be considered.
If the very first crypto were to continue to stagnate, the altcoins would rally, which would drop the BTC's dominance to its lowest level in 2019. But what would happen if the BTC's dominance bounced back to the current support level? ?
Yes $ BTC pumps, better dump dem shitcoinz.
The content of this tweet is for informational purposes only. Under no circumstances should you interpret this or any other information as legal, tax, investment, financial or other advice.
(~ ͜ʖ ͡ °)
– Zissou ™ (@ZeusZissou) March 14, 2019
On the one hand, the idea of an altoin season would be over even before it officially begins. The last time Bitcoin dominance reached its current level, it was during the recovery of August 2018 fueled by the hype of Bitcoins ETFs. During this rally, altcoins fell, despite a typical correlation with fluctuations in Bitcoin prices.
Related reading | An experienced Altcoin trader highlights expectations for the Bitcoin and Alt Bull cycles
The most likely scenario is that we observe an environment strangely similar to that observed in the conclusion of the 2014-2015 bear market, where the former began to gain momentum in front of Bitcoin, followed by a slow and steady rise of the main cryptographic asset. However, if the dominance of the BTC does not collapse as suggested by the charts, the whole market could fall again, or Bitcoin could engage in a major rally, independent of all altcoins.
Selected image of Shutterstock
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