Bitcoin price is a mere $2,000 away currently from setting a new high and shocking the world that the cryptocurrency rose from the ashes like a Phoenix once again. The currently flaming hot cryptocurrency is the talk of the world of finance, and it has resulted in altcoins suffering significantly over the last several weeks.

While much of the cryptocurrency community expects alt season to follow the moment Bitcoin corrects and consolidates, BTC dominance could be forecasting that any improvement in the total market cap has set a new higher high over the 2017 peak. All signs point to an extended Bitcoin bull run, after perhaps one more correction.

The last time around when the first-ever cryptocurrency went parabolic, altcoins followed. Two distinct they have done nothing but suffer since.

BTC dominance dropped from a higher of over 90% to as low as 35%. The 2019 rally peak left altcoins reeling, causing dominance to top out at around 72%. Now, BTC represents exactly two-thirds of the total crypto market cap, according to dominance.

Related Reading | Bulls In Control: Total Bitcoin Market Cap Achieves New All-Time High

Bitcoin has attracted a new class of investors, who have next to zero interest in most altcoins that don’t have anywhere near the promise, appeal, adoption, and regulatory acceptance as BTC.

As smart money comes in, comprised of billionaires, hedge funds, corporations, and more, they’ll be focusing on BTC exclusively. In the current economic environment, Bitcoin’s benefits are being viewed as a safe haven and insurance policy, while altcoins carry a significant risk of capital loss.

Alts like Ethereum, XRP, Litecoin, and the tried and true coins could also benefit, but tokens way down the ranks are potentially doomed into obscurity. The one saving grace is another wave of retail investors searching for the next BTC and another alt season taking place, but that could be a significant way off, according to technicals and not just the current sentiment.

A possible breakout of a four-year trendline on BTC.D happens with a close on Sunday night | Source: CRYPTOCAP-BTC on

Five BTC Dominance Charts That Suggest Alt Season Is Postponed

Pure technicals don’t look promising for altcoins, based on BTC dominance. The metric measuring Bitcoin against all other altcoins puts the cryptocurrency at about two-thirds of the crypto market’s total market share.

The chart above highlights what appears to be a breakout from a trendline that first let altcoins gain some ground with Bitcoin stretching back as far as early 2017.

btc domiance ichimoku

The breakout is supported by the Ichimoku cloud, but the candle must close to confirm | Source: CRYPTOCAP-BTC on

Adding credence and validity to the breakout is the fact that the price action is currently above the Ichimoku cloud on high timeframes. A close above the cloud would lead to a strong push higher.

Related Reading | Bitcoin Approaches Top Of Accumulation Zone, Parabolic Phase Begins With Breakout

In the chart below, the monthly BTC.D chart is also closing above the middle-line on the Bollinger Bands. The metric climbed another 30% the last time it closed above the moving average and usually guarantees at least a touch of the upper Bollinger Band which currently resides at 2019 highs.

Altcoins have until the end of November, to prevent dominance from soaring to the top of the Bollinger Bands | Source: CRYPTOCAP-BTC on

Although there are five charts total, the final chart has three more signals that are extremely bearish for altcoins. The Relative Strength Index is nowhere near oversold levels, and recently broke out from a downtrend line, letting the top cryptocurrency rip against alts.

The MACD is also flipping bullish via crossover for the first time since April 2019. The histogram also turned green for the first time since March 2018, just as the last significant

The RSI, MACD, and volume all point to further BTC crypto market dominance | Source: CRYPTOCAP-BTC on

Altcoins have never quite recovered since 2018, and the increasing volume above on BTC.D suggests that the trend of favoring Bitcoin over altcoins is only strengthening.

For the naysayers that argue charting dominance is worthless, the ETHBTC chart – often used to gauge altcoins strength or weakness against BTC – gives signals inverse to all the above, pointing to a deep collapse in Ethereum while BTC runs to new all-time highs.


The Ethereum ratio against BTC also suggests altcoin capitulation is coming | Source: ETHBTC on

The next two weeks are especially critical for altcoins, and are facing a bounce or die type situation against the only just blossoming Bitcoin bull trend.

If Sunday night’s two-week close and the monthly November close at or above current levels, alt season could be delayed indefinitely, or at least for a few more months until retail is sucked back in.

Featured image from Deposit Photos, Charts from

Products You May Like

Articles You May Like

New Peer to Peer Exchange Provides Africans with an Alternative to Paxful
Institutional investors won’t take Bitcoin mainstream — You will
YfDFI Finance: Much Anticipated Farming Platform Released
IMF Says Only 23% of Central Banks Can Legally Issue Digital Currencies
Max Keiser’s Bitcoin Price Prediction For 2021 | The Man Who Predicted Bitcoin Accurately For 2020
Pro traders go short as overbought derivatives propel Ethereum’s new high

Leave a Reply

Your email address will not be published. Required fields are marked *