Here’s Why Altcoins Are “In Trouble” Despite Bitcoin’s Bullish Behavior

Tony "The Bull" Severino

1 year ago

3 mins read

bitcoin altcoins in trouble alt season btc dominance

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Bitcoin price today smashed back above $11,000 and is attempting to hold currently. The incredibly bullish price action following a retest of resistance turned support could have given bulls the confidence to push the crypto asset’s price much higher.

But as bullish momentum builds in Bitcoin, altcoins have turned bearish. According to one crypto analyst, alts are “in trouble” no matter which direction the first-ever cryptocurrency heads next.

Analyst: Bitcoin Is Bullish But Is Ready To ‘Rekt’ Alts Whatever Route It Takes

Bitcoin has been the best-performing mainstream asset of 2020, beating out stocks, gold, and just about everything else. However, digging deeper into the crypto space, 2020 has been all about altcoins.

Ethereum has outperformed Bitcoin by an enormous margin, while DeFi tokens, Chainlink, and several small-cap altcoins have easily bested BTC’s year-to-date ROI.

Suddenly, however, the tides have turned. After a controversial selloff from a “food” token founder in the DeFi space, the rose-colored goggles have come off.

Even DeFi “darlings” Chainlink, Yearn.Finance, and Binance coin have fallen while Bitcoin has recovered from a fall to user $10,000.

BTCUSD Versus "Total 2 CryptoCap" Altcoin Market Cap | Source: TradingView

Examining the differences between Bitcoin’s weekly price chart, and the total altcoin market cap shows one glaring difference that could be responsible for the top crypto asset being more bullish than alts.

Bitcoin is currently retesting downtrend resistance turned support, while the altcoin market cap’s downtrend line is far below. Altcoins could have gotten too overheated too soon after the breakout, that resistance was never confirmed as support.

Whatever the case may be, one crypto analyst and investor says that “alts are in trouble,” regardless of where Bitcoin goes next. But with how bullish Bitcoin has been, the direction is likely up.

Currently $BTC looks bullish so alts in trouble.

If $BTC pumps, alts in trouble.

If $BTC dumps, alts in trouble.

— Koroush AK (@KoroushAK) September 16, 2020

BTC Dominance Could Reach Highest Point Since Crypto Bubble

If altcoins are indeed in trouble, then it is due to a massive head and shoulders pattern confirming on the BTC dominance chart. Bitcoin dominance takes the top crypto asset’s market cap and weighs it against all of the altcoins in the space.

At the low point, BTC dominance reached 35% and at the high last year, 72%. If the pattern confirms, however, a target of 83% dominance or higher is possible.

BTC.D Bitcoin Dominance Weekly Market Structure | Source: TradingView

Coinciding with this “throwback” retest of resistance turned support, which we know from BTCUSD is a critical situation, there’s also a breakout of a bullish falling wedge pattern.

The bullish breakout closely resembles that previous breakout that took BTC.D to 72% in 2019. That year, like 2020, altcoins led Bitcoin to revisit highs, but then the leading cryptocurrency left altcoins behind and they bled out significantly.

With BTC dominance showing similar signals, Bitcoin looking bullish, as the analyst claims, alts very well could be in a world of trouble.

Featured image from DepositPhotos, Charts from TradingView

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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