Hello everyone,
How are you all? I hope everyone is fine and doing great in their life.
The market is in rest mode and we are all waiting for the next big pump in altcoins. Be it hive or any other altcoin we all want them to fly high and give us some massive gain. I will share and analyze the bitcoin dominance here with all of you so we get an idea about the upcoming market movement.
In the screenshot below we can see the bitcoin dominance chart with last 7 years of data.
We recently observed that bitcoin dominance hits the peak for its value in last 4 years. We got to see the dominance reaching 66.04% which was last seen in the year 2021. While it is good for bitcoin, it will make it tough for the altcoins to move in the similar fashion as the btc is dominating the market right now.
We have already seen a reverse movement from the 66.04% BTC.D levels as you can see in the screenshot below.
Now I am going to share the two trendlines which I am personally looking at for now. There are two lines below and the one at the bottom was last observed in Feb 2024 and that was when altcoins reached massive valuation. Most of them were at 4-5X from where they are right now.
If we can reach that trendline which is at 52% dominance, that is a decrement of 14% from where we are right now, Alts will explode and we will easily get 4-5X once again on our altcoins. If that bottom trendline is broken then we will see the Alt rally like last bull cycle.
If you will ask me, I will suggest anyone holding their tokens to start selling them in portions as soon as we reach 56-57% dominance for bitcoin. You can never predict the peak of the market and so it is better to book your profit in portions so that no regrets are left for you.
In the screenshot above we can see the bitcoin dominance and the Total 3 Market Cap charts together. Total 3 Market Cap refers to the Market Cap of crypto excluding Ethereum and Bitcoin. Now look at the above chart carefully. I know it is difficult to understand but let me break it down for all of you.
The single pink lines denotes the bitcoin dominance and the normal chart you see is the Market Cap of all alt coins.
If you observe carefully, small corrections in BTC.D helps Alt pump a little for short period of time. That is the reason why in case Bitcoin dominance falls by that massive 10-14% we will definitely witness the Alt coins pump like never before in this entire crypto cycle.
I think good days are just around the corner and you should not sell your holdings if you have came this far.
Thank You and make sure to check Crypto Company services as I recently shared in my blog. You can simply click on the picture below and it will take you to their official website.
