Altcoins such as Ethereum, XRP, and Litecoin are finally showing significant moves, regaining some of the market dominance they lost to Bitcoin year-to-date. If the trend continues it could mark the beginning of a new “altseason.”
Bitcoin’s market share began rising Dec. 2018. Following a 327 percent upswing, BTC went from $3,200 to nearly $14,000 in a matter of six months. During that time, its dominance broke out of an ascending triangle that was forming on its 1-week chart.
Per the bullish formation, BTC was expected to experience a 38.7 percent upswing that could have taken it to 80 percent market share, similar to what Max Keiser, host of RT’s Keiser Report, forecasted.
Bitcoin rose to levels of dominance not seen since 2017, peaking at 73.4 percent market share. Now, BTC dominance moved below the 71.5 percent support level and the 200-week moving average, signaling a further correction down to the 150-week moving average. This coincides with the most recent report by Binance, suggesting that BTC dominance will go back to the 50–60 percent range.
“We still believe in this, partly because BTC dominance was below 60 percent for an extended period, from May 2017 until June 2019. It has only been in the past three months or so that BTC dominance has shot up so dramatically, and the crypto-world has found its way of making everyone feel like a prisoner of the moment. Short-term wise, though, BTC dominance may be sticking around,” reads the report.
Due to the fact that assets that break out of ascending triangle patterns usually reverse to the breakout point, the bearish scenario for BTC dominance doesn’t seem unlikely.
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