Altcoins in Danger of Getting Wrecked As Bitcoin Forms Bottom, According to Top Crypto Analyst
A popular crypto strategist is highlighting one key metric to determine whether or not Bitcoin (BTC) will outshine altcoins in the coming months.
The pseudonymous trader Rekt Capital tells his 312,300 Twitter followers the Bitcoin Dominance chart (BTC.D) seems poised to rise and complete a wedge pattern dating back to early 2021.
“BTC Dominance is on the cusp of confirming a breakout from a year-long wedging structure (black).
A breakout from this pattern would likely lead to more downside on altcoins.”
The BTC Dominance chart tracks how much of the total crypto market capitalization belongs to Bitcoin. A bullish BTC Dominance suggests Bitcoin is rising faster than other crypto assets or altcoins are losing value while the leading crypto by market cap surges.
The analyst next zooms in on the chart to say that if BTC.D can sustain its breakout, it will likely land in the 49% to 51% zone, a height last reached in April and May of 2021 when Bitcoin was trading above $60,000.
“BTC Dominance has reached the top of the black wedging structure. In fact, looks like BTC Dominance is breaking out from the wedge.
If BTCDOM dips into the black wedge top and the retest is successful… BTCDOM could then soar to as high as the green area above.”
Rekt Capital concludes his analysis by mentioning Bitcoin’s 200-day moving average (MA) as a potential indicator of what would mark a price bottom for BTC in the current bear market.
“Historically, BTC tends to bottom at, around, or just below the 200-week MA (orange).
BTC would need to drop an additional -25% from current prices to bottom at the 200 MA.”
At time of writing, Bitcoin is changing hands for $29,393, down over 4% in the last 24 hours.
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Author: Daily Hodl Staff
