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Bitcoin has seen some notable upside today that has put a firm end to its multi-week bout of trading between $9,000 and $9,300.
The cryptocurrency is now flashing some signs of strength as buyers attempt to propel it past its crucial near-term resistance at $9,500.
It appears that this latest movement higher has come about as a result of investors rotating their altcoins profits into BTC, as most of the benchmark cryptocurrency’s smaller counterparts are starting to reel lower.
Although it remains a speculative possibility, today could mark a shift in the trend of altcoins outperforming Bitcoin.
Over the past few weeks, altcoins have been able to post some notable upside as a result of Bitcoin’s declining liquidity and trading volume.
One analyst is now noting that he thinks smaller crypto tokens are about to “rage dump” across the board as BTC begins flashing some signs of strength.
Bitcoin Starts Recapturing Dominance Over the Market as Altcoin Rallies Falter
Over the past few months, Bitcoin has been ceding a significant amount of its market dominance to altcoins.
This has come about due to the cryptocurrency’s extended bout of sideways trading, which has caused it to form a macro trading range between $9,000 and $10,000.
According to data, BTC’s dominance was sitting around 70% in mid-May. This is around when it peaked and started declining.
From here, it reeled to a low of just under 62%, which was set just this past week.
This trend has been the result of the strong uptrends that many altcoins have been caught within in recent times.
Many of these tokens – including Cardano, Chainlink, and virtually everything related to the DeFi sector – recently set fresh yearly highs.
Today, however, this trend has shown some signs of breaking, as Bitcoin broke out of its trading range between $9,100 and $9,300, rallying as high as $9,450 before finding some resistance.
This surge allowed it to recapture roughly 1% of its dominance of the market.
If today’s trend is part of a bigger shift, then BTC may continue garnering more control over the entire market in the days and weeks ahead.
Analyst: Altcoins to “Rage Dump” as BTC Takes Control of the Market
Before today’s altcoin sell-off, one analyst forecasted that alts are about to “bring the pain” to investors.
He speculates that smaller crypto tokens may dump between 5% and 15% against Bitcoin in the weeks ahead.
“Alts are about to bring the pain. This chart doesn’t miss and hasn’t missed in this entire thread. Alts are going to rage dump across the board 5-15% on the BTC pairs (USD unsure depends on BTC direction). Do with that info what you will.”
Image Courtesy of Pentoshi. Chart via TradingView.
How Bitcoin trends in the days and ahead should provide insight into just how significant today’s movement will be for altcoins.
Featured image from Unsplash. Charts and pricing data from TradingView.
