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Bitcoin domination The cryptocurrency market is dangerously close to long-term resistance levels that have caused major reversals in the past. This resistance level is highlighted in the weekly BTC.D Candlestick Timeframe chart.
Every time domination taps this descending trend line, it struggles to break through and eventually falls. In particular, Bitcoin’s domination is now returning to this resistance. Technical outlook posted On the TradingView platform, this means that crashes will reach 40% within the next few months.
Bitcoin advantage could crash to 40%: Suitable for the Altcoin market
The dynamics behind Bitcoin domination are different in this cycle compared to previous cycles. This is because domination has grown significantly since the start of this cycle. Leaves almost space for the Altcoin season As many people continue to expect. At the time of writing, Bitcoin’s market advantage is sitting at an annual highest of 63.2%. Data from CoinMarketCap.
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However, an interesting technical analysis shows that Bitcoin dominance is currently taking advantage of a trend line of resistance, which is at risk of falling below 40% to 34.9%. If that pattern is true again, the crypto market could be nearing the stage where Ethereum, XRP, and other altcoins will regain strength when many hopes become the next alto season.
a Bitcoin’s advantage drop The forewarning of Altcoins will be aggressively boards to show that the Altcoin market is outperforming Bitcoin. This is characterized by a widespread rise in the prices of major altcoins, such as Ethereum, Solana and XRP. In such cases, tokens such as Ethereum, XRP, Cardano, ChainLink, BNB, Litecoin are likely to attract early attention from retailers, so-called Dino coins that survive multiple market cycles.
However, unlike previous Bull Runs, the crypto market is saturated with thousands of altcoins, as most were attracting attention, as they only had hundreds of altcoins. After a large market cap altcoin, the spinning could move towards more niche sectors. Sectors like Artificial Intelligence (AI), Real World Assets (RWA), and DEFI can also attract attention, but even within these categories, choose AltCoins, which will have a strong filtering process applied and improve performance.
Can Bitcoin’s advantage really crash to 40%?
Bitcoin’s domination, which crashes to 40%, is not a new phenomenon, looking at how bull markets unfold in 2017 and 2021. However, it is becoming increasingly difficult for such a phenomenon to occur again. Considering the position of Bitcoin In today’s investment world, through spot Bitcoin ETFs. These funds in these ETFs have been locked up for a long time. In other words, as seen in 2021 and 2017, BTC’s refusal to control may not automatically result in a massive liquidity flow into the Altcoin market.
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Even if Bitcoin control crashes towards 40% New Altcoin Cycle Guidemany altcoins end up with a brutal drawdown in the end. Over the past market cycle, the majority of altcoins have lost more than 90% as bullish sentiments faded and capital returned to absurd.
Featured Images of Dall.E, Charts on tradingView.com
