Sorry I'm a rooky but I want to learn. What exactly am I looking at? And what is your prediction about alts? Because they suffered lately from rising BTC dominance... Thanks in advance!
mind-wattle
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@fondCloud47756, Hey mate, yeah so there is an index called the Bitcoin dominance. The Bitcoin dominance measures how much of the market capitalisation bitcoin is versus the rest of the market. At the moment the Dominance is around 60% or so. This chart is just the flipped Bitcoin dominance, or 1/(BTC Dominance), which is essentially altcoin dominance.
Therefore, the higher this chart goes, the higher the altcoin dominance is.
As you can see the orange and green moving averages are showing a bullish sign in this case.
fondCloud47756
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@grant-lachlan, thanks! Very clear explanation. So you expect alts to rise in the coming months. It's so difficult because I just spoke to people who think the opposite, that we are almost at the top and go down.
But 2021 was bullish right? So if this is the top, and we go bearish from March, then we have to wait again for few years?
mind-wattle
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@fondCloud47756, Typed out a reply to this but it didn't seem to post properly.
If history is any indication, Bitcoin peaks about a month before altcoins do. So expect that if we find a market cycle top for Bitcoin, that altcoins still have a few weeks left to run.