A widely followed crypto analyst has warned of a bearish dive on altcoins, noting a popular metric.
The analyst, known by the crypto industry as Kaleo, said that Bitcoin dominance will continue to rise and capture more than the crypto market value. thinks.
BTC dominance refers to Bitcoin’s share of the total market cap. This term is often used to measure Bitcoin’s importance against other cryptocurrencies and its impact on the market. Increasing Bitcoin dominance is often a sign that investors are increasing demand for Bitcoin. This could mean that the demand for other cryptocurrencies is decreasing or that confidence in Bitcoin is increasing.
“Bitcoin Dominance (BTC.D) has continued to rise after the mini altcoin rally we saw after the Shanghai upgrade. BTC.D will break above the channel with no clear resistance until around 52%, the target range we have been discussing since December.”
At press time, Bitcoin is trading at $29,690 with 48.68% BTC.D.
According to Kaleo, the increase in Bitcoin’s dominance will cause liquidity to flow from altcoins to BTC.
In addition, the trader says that Ethereum (ETH), the largest altcoin by market cap, will fall further against Bitcoin in the near term.
“ETH/BTC: ETH had a nice rally after the Shanghai update, but has fallen steadily since then. I’m still aiming for a drop towards the December 2022 targets. I expect to see some momentum as BTC climbs $30,000-40,000.”
Another altcoin that the trader is following is Injective (INJ). According to Kaleo, INJ seems like an outlier. The trader predicts that the altcoin price could surpass the $10 level.
The trader also noted that INJ’s low timeframe pattern is similar to the continuation patterns that altcoins showed in 2021.
It’s also fun looking at LTF continuation setups like this as well. Reminds me of playing with alts in 2021. pic.twitter.com/ZVTrajiI9M
— KALEO (@CryptoKaleo) April 26, 2023
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