For much of the year, crypto analysts have been clamoring for an alt season that promises unheard of returns across the entire space. Talk of 10x returns during the hunt for the next Bitcoin and becoming rich overnight fill social media feeds.
However, Bitcoin dominance has only grown since it broke out of the deepest depths of the bear market back in early April, kicking off a parabolic run that has yet to see any significant correction. Now, after a recent pattern break, analysts are expecting a further rise in Bitcoin dominance and warn not to be fooled by bullish ALT/USD charts that are actually being driven by Bitcoin’s strength against the dollar.
Crypto Confusion: It’s a Bull Market for Bitcoin, but a Bear Market for Altcoins
According to crypto analysts, Bitcoin dominance charts show a break above resistance that could cause BTC dominance to “run to 70% soon.”
This chart really doesn't bode well for the altcoin bulls… Bitcoin dominance looks like it's going to run to 70% soon. pic.twitter.com/p4WAfLSATD
— Felipe (@PhilCrypto77) June 20, 2019
The bearish sentiment extends into the public, who according to poll results believe that BTC dominance will rise “higher” above the current 57% dominance Bitcoin currently enjoys over the rest of the market.
Bitcoin dominance is 57%. This number eventually will be:
— Dennis (@pourteaux) June 19, 2019
Being bearish on altcoins, especially the “major cap” altcoins like Ethereum, Ripple, and Litecoin – which are all showing bullish signs on their USD price charts – is surprising. Altcoins are in their longest accumulation phase yet, and talk of an alt season continues to permeate across the market.
Another crypto analyst warns not to be “deceived” by Bitcoin doing well against the dollar and the effect it has on other altcoin price charts trading against USD.
Top 10 market cap coins vs $USD pair have nice bullish setups. Good looking flags. But all look horrible versus BTC.
The strength versus the dollar is purely a function of Bitcoin doing well, do not be deceived in thinking total market cap up is money flow into entire sector.
— Bob Loukas (@BobLoukas) June 19, 2019
Most altcoins across the market also trading against BTC and not just USD, causing their values to be tightly correlated to Bitcoin’s price movements relative to USD. This is why when Bitcoin rises or falls, altcoins can often be pulled right along with it.
Other times, altcoins diverge, which causes a rise in Bitcoin dominance. The trigger that causes this varies, but the likeliest factors influencing this trend change are the focus on Bitcoin over altcoins from institutions, and the recent news that Binance would be blocking US customers from its regular exchange and launching a US version sans many of the assets that made the platform attractive to investors in the first place.
Related Reading | Altcoin Trader: Alt Market Cap Shows Longest Accumulation Phase Yet
Regardless of the reasoning, it’s interesting to witness such bullishness across the crypto space, but with Bitcoin absorbing nearly all of the value from the market at the expense of its altcoin cousins.
Bitcoin price is currently roughly $9,350, and a break above $9,500 should set the path for the first attempt at $10,000. What happens with BTC dominance is anyone’s guess, as altcoins could rebound in a powerful move and start an alt season, or Bitcoin could continue to drain the market of all its value in the coming days.