A popular crypto strategist highlighted an important metric to determine whether the price of Bitcoin (BTC) will eclipse altcoins in the coming months.
The trader, known by the alias Rekt Capital, told his 312,300 Twitter followers that the Bitcoin Domination chart (BTC.D) looks poised to rise and complete a wedge pattern stretching back to early 2021. told.
“BTC dominance is about to break the one-year wedge structure (black). A break in this pattern will likely lead to further declines in altcoins.”
The BTC Domination chart tracks how much of the total crypto market volume is owned by Bitcoin. A rising BTC Dominance indicates that Bitcoin is rising faster than other crypto assets or altcoins are depreciating.
The analyst then zoomed in on the chart, stating that if BTC.D continues to rise, it could reach the 49% to 51% region. This is a high that was last reached in April and May of 2021 when Bitcoin was trading above $ 60,000.
“BTC Dominance has reached the apex of the black wedge structure. In fact, BTC Domination seems to be coming out of the wedge.
If BTCDOM reaches the top of the black wedge and the retest is successful… BTCDOM could go as high as the green area above.”
Finally, Rekt Capital drew attention to Bitcoin’s 200-day moving average (MA). The analyst noted that this level is important in determining what a price bottom would be for BTC in the current bear market:
“Historically, BTC tends to bottom around or just below the 200-week MA (orange). BTC will need to experience another 25% drop from current prices to bottom at 200 MA.”
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.