Bitcoin Dominance Rises As Market Turns Red, What Does This Mean For Altcoins?
- BTC.D rises in price as altcoins suffer a bloody day in crypto.
- BTC.D attempts to break out above 8, and 20-day Exponential Moving Averages as altcoins struggle to hold their key support.
- The price of BTC.D eyes a rally to 48% as this could mean more pain for altcoins.
Many altcoins have experienced a relief bounce across the market as Bitcoin Dominance (BTC.D) remains below the 40% marked area allowing altcoins to rally when the market recovers. With Bitcoin Dominance (BTC.D) rising from the ashes, we could see the price of altcoins suffering more pain than expected if the price rallies to 50%.
Bitcoin Dominance is the percentage of total cryptocurrency value that is made up of Bitcoin. Its basic premise is that as BTC’s dominance increases, the value of altcoins decreases.
State Of The Market
State Of The Market | Source: On Coin360.com
After showing relief bounces and the crypto market cap looking ready to rally to a high with the hopes of altcoins joining the party, this was caught short as many altcoins experienced a price decline, with many losing their key support with more change of going lower as the price of BTC.D keeps rising.
Bitcoin Dominance (BTC.D) Price Analysis On The Weekly Chart
Weekly BTC.D Movement | Source: BTC.D On Tradingview.com
Many altcoins have shown so much strength as the rally, with others producing double-digit gains coupled with the fact that BTC.D was down as there is not much Bitcoin effect during price retracement.
With BTC.D set to break its long downtrend, this could affect the price of altcoins as BTC experiencing a downtrend could affect altcoin performance and the time required for altcoins to bounce from retracement.
BTC.D experienced a rally to a high of 72% as most altcoins were dormant during this period with no real price movement despite BTC experiencing good price movement. BTC.D rising is a disadvantage to most altcoins as this usually affects their movement to the upside and suffer more drops when prices retrace.
Altcoins performance is better when BTC.D value is below the 30% mark area as this helps altcoins to react faster and better to price drop when BTC a price decline. If the price of BTC.D breaks and closes above 41.5%, this could mean altcoins would suffer more pain when BTC retraces in value as the impact on altcoin prices will be more.
Weekly resistance for BTC.D – 41.5%.
Weekly support for BTC.D – 40%.
Price Analysis Of BTC.D On The Daily (1D) Chart
In the daily timeframe, BTC.D faced rejection at the 48% mark as the value declined to 38%, where it formed good support to bounce off that region. The value of BTC.D continued to range in value as it formed an ascending triangle with price breaking out. A break and close above 41.5% would mean altcoins will suffer more price decline when BTC drops in value.
Daily resistance for BTC.D – 43.1%.
Daily support for BTC.D – 38.5%.
Featured Image From zipmex, Charts From Tradingview