Bitcoin gets closer to ‘51% attack’ on altcoin market

June 13, 2023 Coin Telegraph

Bitcoin's market dominance index has failed to sustain above 50% since April 2021 — so will this time be any different?

Bitcoin's (BTC) percentage share in the crypto market has risen to nearly 50% in the aftermath of the last week's altcoin market rout.

On June 13, the Bitcoin Dominance Index (BTC.D), which tracks BTC's weight against other cryptocurrencies, reached 49.29%, slightly down from its two-year highs of 49.66% seen earlier this week.

*BTC.D daily price chart. Source: TradingView*

BTC not an "unregistered security"

The surge in Bitcoin dominance comes after the United States' Securities and Exchange Commission's (SEC) lawsuit against the crypto exchanges Binance and Coinbase. In its court filings, the commission accused many leading altcoins, including Cardano (ADA) and Solana (SOL), of being "unregistered securities."

Bitcoin's market share typically rises during high market stress, given that traders view it as the least volatile, non-stablecoin crypto asset than most cryptocurrencies. For instance, at the height of banking crisis in March 2023, Bitcoin's dominance versus altcoins had also rebounded to 50%.

*Altcoins' seven-day performance versus the U.S. dollar and Bitcoin. Source: Messari*

There's also other cues suggesting Bitcoin's dominance could grow further to finally break 50%.

For instance, DWF Labs, a crypto market maker, has reportedly sent millions of dollars worth of non-Bitcoin tokens to exchanges, this potentially adding selling pressure for certain altcoins.

Independent market analyst Stack Hodler also suggests that most crypto hedge funds would first and foremost abandon their altcoin exposure.

But not everyone is bullish on BTC dominance. Fellow analyst Moustache, for example, argues the altcoin market may have bottomed once again as Bitcoin will be unable to break the 50% mark.

#Bitcoin

Is the USDT-Dominance about to fall?

If so, we're in for a massive Altseason.

-Head and Shoulders pattern forming (W)?
-Stoch RSI heavily overbought.

In the last 3 years this has led to an Altseason 4 out of 5 times.

+ Sentiment is in the basement for most = Good. pic.twitter.com/odU5jg8srF
— ⓗ (@el_crypto_prof) June 12, 2023

Bitcoin dominance risks pullback in June

Chart technicals suggest that Bitcoin's dominance can indeed drop in the coming weeks as altcoins rebound.

Most notably, BTC.D has failed to close decisively above the 50%-mark since April 2021, often reversing its gains due to an overbought weekly relative strength index (RSI).

*BTC.D weekly performance chart. Source: TradingView*

Bitcoin now faces a similar scenario with a retest of the 50% level for the first time since last summer. Meanwhile, its RSI hangs just two points below its overbought level of 70.

Therefore, if history repeats, Bitcoin's dominance will decline toward 39% by late 2023 or early 2024.

On the other hand, a breakout here will be key for BTC — to reach levels not seen in over two years. For example, analyst Crypto Rover sees a classic bullish continuation setup with 52% being the next major hurdle if such a scenario pans out.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Polygon eyes record high as MATIC’s 150% price rally activates textbook bullish pattern

August 20, 2021 Coin Telegraph

Coin Telegraph

Polygon's native asset, MATIC, tests its June resistance level near $1.51 for a bullish breakout setup.

A recent price rally in the Polygon (MATIC) market pushed its prices above $1.56 for the first time in more than two months.

In detail, the MATIC/USDT exchange rate rose 20.65% in just two days to reclaim the June 17 high. Traders raised their bids for the pair after Polygon announced that it would create a decentralized autonomous organization (DAO) for its community members while focusing specifically on the booming decentralized finance (DeFi) space.

Polygon, which offers layer-2 scaling solutions to Ethereum projects, allocated $100 million for the DAO creation — and also to bring DeFi projects into its interoperability pool. The team also announced that it would airdrop new DAO governance tokens atop existing Polygon users, i.e., free tokens for people who hold MATIC.

The solid interim fundamentals pushed MATIC demand among speculators higher, leading to a price rally in the past two days. Meanwhile, the upside move also activated a classic bullish setup that promises to send MATIC prices to a new record high.

Breakout awaited

Dubbed as inverse head and shoulders, the pattern is a common bullish reversal indicator that one confirms after the price makes three troughs in a row below a resistance-like neckline. In doing so, the middle trough (head) appears to be deeper than the other two (shoulders), which are more or less of equal height when measured from the neckline.

Technical chartists typically enter a long position when the price moves above the neckline, with the pattern's maximum height plus the breakout level serving as their ultimate profit target. Their stop loss is commonly at the low point of the right shoulder.

Applying the textbook definitions on the MATIC/USDT three-day chart shows the pair forming an inverse head and shoulder pattern.

*Polygon (MATIC/USDT) three-day chart with the inverse head and shoulders setup. Source: TradingView.com*

On Aug. 20, the Polygon token inched above the neckline resistance of $1.51 following a 150% price rally measured from the June 18 low of $0.62 (head). Therefore, the maximum height of the inverse head and shoulders pattern came out to be $0.89.

As a result, should the MATIC/USDT rate break above $1.51, accompanied by a spike in trading volume, the pair will increase its likelihood of rising by $0.89. In doing so, it would eye $2.40 as its inverse head and shoulders profit target, just $0.30 below its current record high.

Bearish setup

If Polygon bulls fail to reclaim $1.51 as support, its prices could retreat back to the next line of support near $1.35.

*MATIC/USDT 3-day candle chart. Source: TradingView.com*

An additional breakdown would expose MATIC/USDT to $1.09, a reliable support level in recent history.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

MATIC says ‘no’ to crypto bears with new all-time highs, weekly gains near 120%

May 18, 2021 Coin Telegraph

Coin Telegraph

MATIC is now the 17th-biggest cryptocurrency by market cap as an exchange listing sees it reject the bearish mood afflicting major tokens.

Ethereum infrastructure development platform Polygon’s MATIC token hit new all-time highs on May 18 to become the best-performing cryptocurrency on the day.

*MATIC/USD 1-hour candle chart (Coinbase). Source: TradingView*

MATIC hits fresh record high

Cointelegraph Markets Pro and TradingView showed MATIC/USD reaching $2.18 during trading on May 18 in firm defiance of the broader market downtrend.

After being listed on major exchange Kraken on May 17, MATIC surged, continuing a dramatic uptick that had begun when Kraken released the news earlier this month.

VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for MATIC on May 12, prior to the recent price rise. The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

VORTECS™ recorded unprecedented high scores for MATIC beginning May 15. At 99, the token gained the highest score ever seen on the platform, which was followed by multiple price spikes culminating in May 18's highs.

*MATIC/USD with VORTECS™ Score chart and Kraken listing alert. Source: Cointelegraph Markets Pro*

As such, the 17th-largest cryptocurrency by market capitalization thus outperformed all others in terms of daily and weekly gains. At the time of writing, these totaled 22% and 118%, respectively.

The timing was a blessing to many traders who had spent recent days watching the value of their holdings decrease in line with selling pressure on Bitcoin (BTC).

“MATIC is singlehandedly trying to save my portfolio,” popular trader Scott Melker told Twitter followers.

Close behind MATIC was Synthetix Network Token (SNX) with 21% returns in the past 24-hours, followed by Telcoin (TEL) with 17%.

Traders keep the faith in "alt season 2.0"

By contrast, the top 10 cryptocurrencies by market cap were all in the red, with the exception of XRP, which was up 6% at $1.61.

For longtime market participants, however, it remained “business as usual” — recent events were no cause to reevaluate what is still a nascent ecosystem.

“Many Altcoins have been developing multi-year market structures,” trader Rekt Capital tweeted on May 18.

“Any short-term fear or uncertainty over the next few days or even week or two are unlikely to change these long-term formations and structures.”

Bitcoin bounced at $42,000 — the site of its all-time highs from February — to regain some lost ground amid warnings that the bottom may be yet to come.

Polygon price