BTC.D Analysis - Alt Season Incoming?
BTC.D has been in an uptrend ever since FTX rugged the entire market.
It makes sense, the BTC maximalists with their self custody looked smart AF as our ALT coin portfolio's got siphoned out by various hackers, insiders and (probably) government agencies.
We do seem to have hit resistance though with dominance failing to stay above 50%, below the the 20&50 MA and testing the bottom edge of the pictured bear flag.
With BTC prices remaining boringly stable this could - according to the classic dominance cycle give us a big pump in the ALTs as, logically, if BTC as a % of the total market is falling while it price stays still its because ALT % is increasing (money flowing into ALTS).
This could be for a few reasons - XRP looks attractive following its 'non-security' designation, ETH will get a major boost from the news that PayPals PYUSD stable coin is an ERC20 token and because BTC is so stable investors are looking for volume and excitement in the wider crypto market again.
If you are unfamiliar with dominance cycles there is a great breakdown here -
It makes sense, the BTC maximalists with their self custody looked smart AF as our ALT coin portfolio's got siphoned out by various hackers, insiders and (probably) government agencies.
We do seem to have hit resistance though with dominance failing to stay above 50%, below the the 20&50 MA and testing the bottom edge of the pictured bear flag.
With BTC prices remaining boringly stable this could - according to the classic dominance cycle give us a big pump in the ALTs as, logically, if BTC as a % of the total market is falling while it price stays still its because ALT % is increasing (money flowing into ALTS).
This could be for a few reasons - XRP looks attractive following its 'non-security' designation, ETH will get a major boost from the news that PayPals PYUSD stable coin is an ERC20 token and because BTC is so stable investors are looking for volume and excitement in the wider crypto market again.
If you are unfamiliar with dominance cycles there is a great breakdown here -
Comment:
Dominance did dump.. but so did BTC price as all markets got hammered in the wake of Evergrandes bankruptcy. Alts should, according to dominance theory stabilise and that is looking to be the case as the market starts to take stock. If BTC price can stabilise we could see ALTS start to recover relative to BTC.