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Bitcoinsensus
3w
22
Image Credit: Bitcoinsensus
Bitcoin’s Falling Dominance and Does It Portend an Alt Season?
- Bitcoin's dominance is falling while altcoins are showing potential signs of growth, repeating patterns from past altseasons.
- Long-term Bitcoin holders are selling their coins, causing a correction. Short-term investors panic sold causing a disadvantage for themselves.
- Altcoins did not crash with Bitcoin's drop, causing Bitcoin's dominance to break the long-term trend and begin falling.
- The current situation is similar to the moment on January 3, 2021, when Bitcoin's dominance plummeted before the start of the previous altseason.
- Altcoins could potentially reach the previous peak, then consolidate near that peak and break out when the MACD goes from red to green.
- Bitcoin ETFs like those from BlackRock are also buying, allowing its price to recover, and this liquidity can go to altcoins later.
- Bitcoin is likely to rise to $106K - $107K before a huge correction down to the moving average that has served as support throughout the bull market.
- Coins with larger capitalization show the best growth first, but it's still early in the bull market for altcoins. Pay attention to the L1 coins with large enough capitalization to start growing, then evaluate coins holistically considering technological and infrastructural indicators.
- Think critically, remain cautious, and evaluate all coin aspects before investing.
- Historically, not all coins grow at the same time, so it's important to pay attention to the ones with the best growth potential.
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