Calm Before The Storm In Altcoins! Here Are the Remarkable Data?

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Lately bitcoin We observe an upward movement on the side. During this time, there is a weak situation in general for altcoins. In this article, I will give you a general assessment of the market with the available data.

First of all, the $53,000 level (red), which was previously rejected on the Bitcoin side, works as support. Bitcoin had made a strong move by surpassing this level that it had been rejected before. Exceeding this level, in particular, caused the deterioration of a formation that I called falling hills before. According to this formation, Bitcoin was in a downtrend.

Image: 1 (BTC chart)

However, we can say that this formation is broken with the move above the $53,000 level. Technically, the $53,000 level is support. As long as there are no closes below the support, the expectation of upward movement on the Bitcoin side continues. This is an important level.

BTC Domination Rising!

With this recent rise on the Bitcoin side, we have seen a weakening in altcoins in general. This is because the dominance is at the support level and is starting to rise with the strong movement from Bitcoin.

As you know, dominance of Bitcoin cryptocurrency shows its market share. If dominance is on the rise, it indicates a stronger money flow to Bitcoin relative to alcoins. For this reason, it is normal for money to come out of altcoins while dominance rises.

As dominance rises, the gap between Bitcoin and altcoins widens. For this reason, if dominance increases as Bitcoin rises, it may mean that altcoins are cheaper than Bitcoin. In this respect, the continued rise of Bitcoin and the rise of dominance at this time may bring about a movement in altcoins in the future.

Image: 2 (BTC Dom.)

On the domination side (as can be seen in the second picture), we can see that the purple level (39) has received two responses. In other words, there is the formation of a structure that we call the double bottom. In the current situation, it has reached the white level (48). This level creates a resistance. For this reason, we have been observing a more horizontal movement on the Bitcoin side for a while.

If we expect the rise on the Bitcoin side to continue, it is important to exceed the white level on the domination side. If this level is exceeded, I expect it to move to the red level (52). When it reaches the red level, a slowdown can be seen on the Bitcoin side again.

For the New Taurus

In order for a strong bullish period in altcoins to come, it is important that the rise on the Bitcoin side continues. In particular, a new peak that may come will be positive for altcoins. In this way, dominance can rise and money inflow can be expected as altcoins will also appear relatively cheap.

The more we see a rise on the dominance and Bitcoin side, the bigger the rises we can see in altcoins. Because this last bull we experienced was triggered by Bitcoin.

With the rise of Bitcoin, the dominance went above 70, and then there were big movements in altcoins with the fall of the dominance from the peak. Because the dominance seeing those levels made Bitcoin expensive and altcoins relatively cheaper.

However, it should not be forgotten that dominance is still not high. Therefore, a strong move in altcoins is possible with strong Bitcoin rises. Weaknesses may continue in altcoins as dominance rises.

In a world where Bitcoin remains weak, it is difficult to expect big moves from altcoins in general. Of course, there will be exceptional altcoins that will make drastic moves in this process.

Thanks for reading and for your patience.

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.


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