Bitcoin Dominance Readies Deadly Blow Against Altcoins, Indicator Says

Tony "The Bull" Severino

1 year ago

3 mins read

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Bitcoin is up over 70% year to date and its recent break through resistance at $10,000 helped propel altcoins toward even stronger ROI. Several altcoins are up well over a few hundred percent, beating out the first-ever cryptocurrency by a wide margin.

This all could soon reverse according to a handful of signals on BTC dominance charts, causing Bitcoin to vastly outperform the rest of the crypto market.

Altcoins Outperform Bitcoin in 2020 After Last Year’s Crypto Market Capitulation

Bitcoin is the first-ever cryptocurrency and anything that came after it is considered an altcoin, or a stablecoin. Stablecoins are backed 1:1 by USD or another fiat currency and assets to ensure stable prices with limited fluctuation. Altcoins can be just about anything, with some designed for smart contracts, others as payment tokens, and several as nothing more than worthless coins to speculate over.

These different types of crypto assets often have an inverse or correlated relationship, depending on market conditions.

For example, in 2019 when Bitcoin rallied to $14,000 – potentially its next target above current levels – altcoins were decimated in its wake. This year, however, altcoins are soaring, helping to carry Bitcoin higher. Together, the two asset types are pumping, yet Bitcoin dominance has been falling.

BTC dominance has fallen to 60%, a level that hasn’t be reached in well over a year – before Bitcoin’s bull rally last year that crushed alts into dust.

Altcoins have been making significant recoveries, not only in USD but against BTC. However, after altcoins have spent several months now beating out Bitcoin, dominance metrics are hinting at a sharp reversal that will let the king of crypto catch up against the rest of the market.

BTC.D Daily TD 9 Buy Setup | Source: TradingView

Buy Setup on BTC Dominance Could Send Alt Season To Screeching Halt

On daily BTC dominance price charts, a TD 9 buy setup has appeared. The TD Sequential indicator designed by Thomas Demark is one of the most reliable in the crypto market. The same indicator called the top in dominance, sparking the extended altcoin season that may be coming to an end. It is only appropriate that the opposite signal also calls the bottom.

After the 9 sell signal, BTC dominance dropped over 13% to current levels. Coinciding with the accurate sell signal, BTC.D appears to be forming a falling wedge pattern. Further adding credence to the possibility of a reversal, the Relative Strength Index is showing a strong bullish divergence.

BTC.D Daily Falling Wedge and RSI Bullish Divergence | Source: TradingView

Technical analysis is never a guarantee of future results, but can be a tool to assist traders, investors, and analysts with predicting the highest probability outcome. Together, a TD 9 buy setup, and a bullish wedge and matching divergence on the RSI, a reversal is becoming more probable by the day.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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