ALT dominance at a crucial point

2022년 2월 15일

I was checking BTC dominance and I thought that not many people talk about altcoin dominance. In part this is because alts dominance is influenced by BTC dominance but I think it can give us a good insight of how altcoin prices will grow (or fall) in response to BTC.

We can see that right now alt.d is over 16% but it has been growing very steeply, but no market can sustain such kind of growth on the long run. I've used Helkin Ashi candlestick to show better the trends as they're the most important things in indexes charts.

I think the white path is the more likely to happen with BTC.D that should keep rising (I'll post a screenshot in the comments) and alt dominance should lose a 3% bouncing on that support area. This should make the angle of growth more sustainable and would be in line with the bearish DIV you see on the RSI.

According with my trendlines, BTC.D should grow at least until the first or the second week of March without reaching the resistance. If BTC will break the resistance it'll go to 52% of dominance easily but this would prevent alts to pump. In this case ALT.D would bounce between the two R/S, possibly go below 12%. If instead BTC.D would stop rising we might see ALT.D taking the green path but I don't see this happening to be honest. In any case next altseason might start once ALT.D will break out current level of dominance.

Current situation would discourage from accumulating ALTS to focus on buying BTC but I think ALTS are very cheap right now so I bought few just in case BTC.D would start lateralize fueling ALTS. If you want a safer approach to this market just DCA with BTC and you should be ok.

I'll add a BTC.D screenshot on the comments. I hope my idea will help you guys with your trading.

Good luck

2022년 2월 15일

노트

As you can see BTC.D is likely to keep rising