BTC Dominance Drops as Bitcoin Breaks Uptrend: Is Alt Season Finally Here?

Tony "The Bull" Severino

5 years ago

3 mins read

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Throughout much of 2019, Bitcoin has vastly over performed most of the altcoin market, except for a select few such as Litecoin, which saw increased buy pressure ahead of its halving – an event that sees the reward miners receive in a crypto asset reduced in half.

But BTC dominance has been in a strong uptrend alongside Bitcoin itself, which went parabolic starting in April, resulting in over 300% gains before its rally topped out at $13,800. Recently it set new highs as altcoins capitulated, but now it’s began to decline, its uptrend has been broken much like Bitcoin’s, and the alt season that crypto investors have been waiting for may finally be here.

Alt Season When? BTC Dominance Drops Off After Bitcoin Rally Begins to Correct

BTC dominance has steadily grown since the massive $1,000 green candle that happened back in April, sending Bitcoin on a parabolic rally that has taken the entire world by storm. But before Bitcoin could reach a new all-time high, its parabolic rally is in serious jeopardy, and the first real correction since the rally began is playing out.

The correction that hit Bitcoin, also has caused BTC dominance to correct, and its uptrend has been broken. BTC dominance has fallen from a high of near 67%, to under 65%. But it’s the uptrend line that’s been broken that is significant. With BTC dominance potentially ready to plummet, could this finally be the alt season crypto investors have been waiting for?

What Happens to the Crypto Market if Dominance Rises?

It’s worth noting, that Bitcoin fell below support turned resistance at 67% dominance as the 2017 bull run really heated up, and has never again breached that level. Prior to falling below, Bitcoin enjoyed most of the market’s life well above 75% dominance. While an alt season is certainly possible, could the resistance at 67% simply the last stop before Bitcoin reclaims its full dominance, and the rest of the crypto market continues to bleed out the rest of its value until much of the altcoin space no longer exists?

If this happens, altcoins will never again reach their all-time high prices that happened back in 2017, and investors will need to accept that alt season was a once in a lifetime opportunity. In fact, new data shows that if altcoin ratios against BTC were to maintain, they would never again reach a new all-time high in USD – even if Bitcoin were to reach $100,000 USD per BTC.

But this scenario only entertains the idea of altcoins maintaining their ratios. Should BTC dominance continue to rise well above 67% the offset will need to come from value leaving the altcoin market, and not only will they never reach another all-time high, they may be doomed completely.

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.