Bull Flag Forming On Bitcoin Dominance Could Deal Crushing Blow to Altcoins

Tony "The Bull" Severino

1 year ago

2 mins read

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Browsing through crypto Twitter or any Bitcoin or cryptocurrency-related subreddit, lately, there’s been talk of an altcoin season brewing right under the noses of crypto investors everywhere.

However, a bull flag forming on BTC dominance could not only keep an alt season from occurring, but it could also deal altcoins a crushing blow and bring their valuations a lot closer to zero.

Cryptocurrency Market Reaches a Pivotal Moment For Bitcoin and Altcoins

The cryptocurrency market is at a critical junction. Bitcoin sentiment is bullish once again. Fundamentals are screaming buy, and technicals point to the asset’s long-term uptrend resuming.

The same can’t be said for altcoins, which seem to be struggling to find momentum alongside the first-ever cryptocurrency.

Even clear breakouts through over 800-days of downtrend resistance have thus far failed to reignite the interest in the altcoin space that once was.

Venture capitalists conclude that the days of easy money in crypto are likely over. Some analysts even claim that these assets will never revisit their former all-time high valuations, while others believe that altcoins will eventually go to zero.

If a chart pattern in BTC dominance charts confirms as valid, altcoins will soon find themselves a lot closer to zero, as Bitcoin could soon eclipse the alternative crypto assets.

BTC Dominance Could Spike to 85% If Bull Flag Pattern Confirms

Bitcoin’s last halving kick-started the first-ever altcoin season, but this time around, alts have only suffered. The suffering may pick up in severity, according to BTC dominance charts which are signaling continuation to the upside with a clear bull flag formation.

Bull flags are often continuation patterns, and typically break bullish to the upside. Bull flags have a tendency to trend downward before the upward breakout, further shocking bears with a powerful pump.

These moves are calculated by taking the flag pole and adding its length to the top of the pattern where the breakout occurs.

In the chart above, at the end of the crypto bubble, BTC dominance formed a W-shaped double bottom.

The initial rise from there formed a bull flag and downward sloping channel. This pattern eventually broke up, confirming the bull flag pattern as valid.

After another measured move matching the height of the first flag pole, another bull flag appears to be forming.

If this, second, downward sloping channel breaks upward, it could send BTC dominance to nearly 85%.

Such a move would either require an enormous move in Bitcoin to the upside that isn’t reflected in altcoins, or altcoins will bleed into Bitcoin in a big way.

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.