Bitcoin Dominance Could Be Poised for Extended Downtrend As Alts Rally

Tony "The Bull" Severino

5 years ago

2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Last year, it was all about Bitcoin and its parabolic rise out of its bear market bottom. The first-ever cryptocurrency consolidated for months in a low range around $3,000 before exploding 350% to $14,000 at the year’s high.

During the rise, BTC dominance also rallied, wiping out the value of most altcoins as a result. However, with the latest altcoin rally, long-term indicators are starting to roll over, suggesting that BTC dominance is about to head into a steady downtrend, allowing altcoins to regain much-lost ground against Bitcoin, and potentially outperform the leading crypto asset by market cap for the foreseeable future.

Bitcoin Dominance Ready To Roll Over Into Downtrend

This week, Bitcoin took off from lows around $7,000 and is already flirting with $9,000. The bullish momentum spilled across the crypto market, causing many altcoins to break out of downtrend resistance and go on massive rallies of their own – something that hasn’t been seen since early 2019.

When Bitcoin and altcoins bottomed out in December 2018, the two asset types went on a rally together. It wasn’t until April 2019 when Bitcoin took off on a parabolic run that altcoins got left behind and BTC dominance really exploded. In late October, the BTC dominance rally finally topped out and has just begun to break down from a massive, multi-month ascending wedge formation.

BTC Dom

Monthly MACD continuing to roll over.

Monthly RSI – coming down from relatively over-bought territory. pic.twitter.com/wWaZYsUhi5

— dave the wave🌊🌓 (@davthewave) January 15, 2020

Accompanying the breakdown, are a pair of long-term trend measuring indicators that have begun to turn downward, signaling that there’s likely significant downside and a full-scale trend reversal about to occur. The MACD has started to turn back downward for the first time since the crypto bubble popped, and the Relative Strength Index is showing a similar signal.

BTC dominance measures how much market share Bitcoin has against the rest of the altcoin market, including the likes of Ethereum, Litecoin, Ripple and more. Because these assets went on massive rallies themselves this week, even though Bitcoin gained as well, it was enough to cause a divergence in BTC dominance.

The latest altcoin rally has confused investors, even billionaire CEOs of major crypto funds. Some are chalking it up to whales playing games on derivatives exchange OKEx, while others are calling it an exit pump before more downside. However, the factors driving the altcoin rally could simply be due to the assets being greatly oversold from two years of a downtrend, to the point where even a little bit of buying up of the illiquid assets caused quite a surge.

Only time will tell if the surge is sustainable, and Bitcoin dominance continues to decline while altcoins grow. But these signals suggest that not only will this happen, but it’s also already underway.

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.