A closely-followed crypto analyst and trader warned investors and traders that while capital is returning to less risky assets, the analyst said. altcoinmay be severely affected by this situation.
Cryptocurrency analyst known under the pentoshi alias said on Twitter. Bitcoin Domination Index (BTC.D) He said he was watching closely.
The Bitcoin Dominance Index is an index that measures the value of BTC in relation to the market cap of all other crypto assets. A rising index represents that altcoins are either losing value faster than Bitcoin or that BTC is growing faster than altcoins.
According to Pentoshi, BTC.D chart is incredibly bullish after holding support at 39.70%. According to the analyst, if we take into account the impact of this chart, “altcoins seem ready to disappear.”
At the time of writing, BTC.D is hovering just over 43%, indicating that Bitcoin is strong as altcoins are constantly losing value. As BTC.D shows strong signs, capital is also moving away from altcoins and bitcoinHe explained that he predicted that he would continue to seek refuge in .
“Altcoin/BTC + USD is bleeding fast while BTC is sitting here. With BTC.D making new highs, there may be outflows from altcoins to BTC before total market outflows to stablecoins.
The crypto strategist also thinks that the pullback on February 10 and 11 shows weakness in the altcoin market.
“Time has taught me something. This level probably won’t stay as support for long, as the market gives you several times to buy support. Two days ago altcoin season tweets were flying around. Today, however, we are seeing full returns. Many markets are located at support levels which, if lost, could cause a significant drop.”
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.