Bitcoin Dominance Reaches Highest Level Since December 2017, What Happens Next?

Tony "The Bull" Severino

6 years ago

2 mins read

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Ever since Bitcoin broke out of the lowest bear market trading range where its yearly lows were set, the crypto asset has skyrocketed, reaching prices not seen since before the bear market began in 2018.

Alongside Bitcoin price itself, the crypto asset’s dominance comparative to other assets in the crypto market – altcoins such as Ethereum, Ripple, and Litecoin – has also grown to levels not seen since the previous bull run. In the past, the divergence eventually corrects, triggering an alt season. But this time around sentiment around altcoins are at an all time low, and because institutions may be focusing on Bitcoin or other factors, dominance may continue to rise at the expense of any remaining altcoin value. What happens next for altcoins and Bitcoin dominance?

Bitcoin Dominance Revisits Previous Bull Market Levels

Earlier this week, Bitcoin price broke above $10,000 and is already close to an attempt at $14,000 as the time of this writing.

The break above the important psychological barrier of $10,000 – which Fundtrat’s Tom Lee claims would open up the FOMO floodgates – indeed caused crypto investors to FOMO into Bitcoin, but it’s been done at the expense of any altcoins investors may be holding. This is reflected in the growth of BTC dominance compared to the rest of the market.

Alongside Bitcoin price rising, so has BTC dominance. The crypto market health metric broke above 60% earlier this week, and is now just below 63.5% – a level where some altcoin focused crypto analysts say could be an area where a strong bounce occurs.

If alts don’t bounce, a major capitulation event may be ahead.

Top Ten Crypto Time Hop Shows Altcoin Sentiment Change

This new high in BTC dominance is a level not seen since the fabled 2017 bull run where Bitcoin reached $20,000, set its all-time high, and caused widespread FOMO into the crypto market by retail investors who bought into altcoins hoping to find the next Bitcoin.

During that time, the top ten cryptocurrencies by market cap were valued much higher than current valuations. The comparison clearly demonstrates how the sentiment across the market has diverged so significantly.

Bitcoin dominance approaches its highest level since Dec 2017. pic.twitter.com/LjhClzQbXz

— Spencer Noon 🕛 (@spencernoon) June 26, 2019

The divergence may be due to this rally being driven by “smart money” institutions instead of the retail investing public. Institutions may be focusing on Bitcoin due to it having the most promise and regulatory support. Or, maybe people have realized that there will never again be another Bitcoin.

Whatever the reason, there are critical times ahead for altcoins. They either finally provide investors the alt season they’ve been waiting for and skyrocket relative to Bitcoin, finally catching up – or, they continue to bleed out and suffer the major capitulation event some analysts are calling for.

Featured image from Shutterstock

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.