This is BTC dominance chart, as you can see it forms a wedge and about to break down, which is very interesting.
What if BTC.d drop?
We can interpret this situation as 2 ways
case 1. People will buy altcoin with bitcoin -> altcoin HUGE pump -> after that, other people will buy bitcoin to FOMO into altcoin
case 2. Big whales already sold altcoin to bitcoin -> Those whales are waiting to sell btc to buy fiat/gold/stock etc SOON.
( I am sorry that I cannot show you in compare chart, asI didn`t subscribe tradingview pro. you can compare btc.d, totla2, total, charts by yourself)
Whenever altcoin market cap was pumpued, there was 'small drop of btc.d' (around 5-12%)
and if you see the altcoin market cap chart below:
As you can see, there is a important trendline in this chart.
The trend line was almost broken down, so it was one of my clues for my last bitcoin posting.
However, it is being recoverd very nicely.
Things are looking quite bullish and happy, isn`t it?
Ok, let me show you another thing.
As value of BTC.d is between 0 and 100 (it is percentile), therefore we can consider it as technical oscillator such as stoch rsi.
That means, if it goes up too high, fall back to low.
Let`s see what was value of BTC.d Just before HUGE price drop from $20K
Plus, it looks like there are some correlation between XAU and XBT
Acutally at that time, XAU price start to correction
As all we know, world econimics are not stable, lots of people are worrying depression, etc.
I think people are waiting to buy gold earlier than (maybe)BTC!!
If whales in case2 sell their btc and FOMO into gold, we will see another huge drop similar to last drop from $20K.
In conclusion, you can buy altcoin, or sell btc whatever.
Of coures, you can buy more btc, but maybe buying alt is likely to add more value to your account
But there is a one thing you have to be aware.
When last drop form $20K, if you check btc.d, you will notice that there was a chance to escape the disaster!!
(sorry again for that I cannot show you exact compared chart :(, I will not subscribe tradingview pro unitil blackfriday, but you can check it by yourself )
My point is, if the btc.d start to drop more than 15%, don`t be a dead man.
It means that people sold their BTC to FIAT!!!, and there must be chance(time lag) to escape altcoin price dump as most people cannot sell altcoin to fiat directly.
If you have alt, you must get out in the lagging period.
Learn from Past, don`t make same mistake.
When it happens, Just GET OUT even it feels seriously hurt.
