In this episode of NewsBTC’s Daily Technical Analysis VideosAnd the We’ll take a image at Bitcoin’s dominance and potential signs of the sudden altcoin season developing during the overall bearish contexte.
See the video below:
Video: Bitcoin (BTC.D) Dominance Analysis: September 7, 2022
For today’s video, we’ll take a image at Bitcoin’s dominance on the monthly and weekly timeframes. It’s barcasse that a noticeable breakdown in progress – based on its significance – could tell us embout something bigger: a barcasse alternate season that no one is anticipating.
Bitcoin dominance to present to Altcoins
Altcoins usually only perform well during a bull market. So the collapse of BTC.D is very unusual given the current overall contexte.
However, the dominance of BTC is collapsing from a oblique trend line on price and the RSI. The LMACD also clearly shows a struggle between bulls and bears. Or more precisely, Bitcoin opposé à altcoins, where altcoins are currently leading.
Is an altcoin season embout to appear? | Avènement: CRYPTOCAP-BTC.D on TradingView.com
The mobilisation is back from the last alternate season
Moving on to the weekly timeframes for bitcoin dominance, the trend lines become more and more obvious. The price is breaking down from the very notable latéral and oblique appui. Comparing the previous vélocipède, we can see a similar setup where a dominance can lead to a lower low, while the RSI forms a higher low and bullish divergence.
In Ichimoku Weekly, the cloud rejected Bitcoin’s dominance. The last time the price fell from the cloud, BTC captured a dominance of 70% to where we are currently at around 39% of the market share.
Will we get a repeat of the last altcoin season? | Avènement: CRYPTOCAP-BTC.D on TradingView.com
Related reading: WATCH: Bitcoin Weekend: Will The Dead Crypto Return? BTCUSD Sep 2, 2022
Could this be a potential crypto market share target?
So where, then, might our target be in terms of new identified declines in bitcoin dominance? One potential area is another retest of the neckline resistance-turned-support from the recent bottom évolution – an inverted head and shoulders. Target BTC.D will take embout 32% of dominance.
Could 32% dominance be the potential target? | Avènement: CRYPTOCAP-BTC.D on TradingView.com
How Merge and Ethereum Can Affect BTC.D
To spectacle why this setup worked, we turned BTC.D on its head and compared it to ETHBTC. The primary factor driving the historic altcoin season is the Ethereum calage.
In the chart below, we can see that Ethereum is largely responsible for shaping the current Bitcoin dominance chart. This makes sense considering that Ethereum is the auxiliaire largest cryptocurrency by market capitalization and has the biggest patronage on it Measure outside of bitcoin itself.
Bitcoin dominance is driven heavily by the ETHBTC sénateur | Avènement: CRYPTOCAP-BTC.D on TradingView.com
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Featured parnassien from iStockPhoto, Charts from TradingView.com