Elliott Wave Theory: Altcoin Bottom Is In When Bitcoin Dominance Reaches 78%

Tony "The Bull" Severino

1 year ago

2 mins read

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Crypto analysts use different tactics to try and predict future price movements in Bitcoin and altcoins. Due to the speculative nature of the emerging asset class, the study of emotion-driven impulses and corrections – called Elliott Wave Theory – can be particularly insightful.

According to one crypto analyst that focuses solely on the practice of Elliott Wave Theory claims that a corrective wave to 78% Bitcoin dominance will send altcoins crashing down once again, but that the target will act as the final bottom for the alternative crypto assets.

Bitcoin Volatility Expected To Further Crush Already Decimated Altcoins

Bitcoin‘s halving is now behind us, and major volatility is expected in the days ahead as Bitcoin price consolidates below the most important resistance level it has ever faced.

An explosive move to the upside could crush altcoins further. An equally powerful move to the downside also likely won’t bode well for altcoins.

Bitcoin and altcoins experience an unusual and sometimes inverse relationship. Altcoins often thrive the most when Bitcoin trades sideways, for example. This is said to be due to boredom in Bitcoin or profit-taking from BTC flowing into alts.

Whatever the reason, altcoins could be in danger if Bitcoin price experiences an explosive move.

According to one crypto analyst’s take on Elliott Wave Theory, that explosive move could send BTC dominance to 78%, causing another major leg down in altcoins.

The fall would take alts back to 2016 prices, essentially erasing all gains from the moment the crypto hype bubble started.

https://twitter.com/theewguy/status/1263069162580000768?s=21

Alt Market Bottom: BTC Dominance Could Reach 78% According to Elliott Wave Theory

Elliott Wave Theory focuses on emotion-driven impulses that take place across the market due to normal changes in market cycles and investor sentiment.

Impulse waves can be up or down, and typically consist of five full waves, with waves one, three, and five being in the primary trend direction. Waves two and four are in the opposite direction of the trend and often consist of smaller, sub-waves.

These smaller sub-waves can also be impulsive or corrective. Corrective moves in Elliott Wave Theory can also have five waves but are more commonly three-wave ABC corrections. These corrective waves can run concurrently as part of larger waves taking place across larger timeframes.

Elliott Wave Theory is complex, but has been shown to be reliable for many types of markets, crypto included.

If Bitcoin dominance does rally to the 78% dominance level, altcoins will represent just 22% of the total crypto market. These already crushed crypto assets will be decimated further, and any remaining value will deflate.

When it’s all said and done, however, those who buy the blood will also be buying the bottom, according to the analyst’s take on Elliott Wave Theory.

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.