In 2019, Bitcoin has separated itself from the rest of the crypto market, growing its dominance to 70 percent for the first time since December 2017. Will the trend continue or will pioneering cryptocurrency reach the point of exhaustion triggering a renewed "alseason?"
The rise of bitcoin dominance began in December 2018. Since then, BTC has grown 327 percent from the lowest to 3200 to the high of nearly $ 14,000. Meanwhile, most altcoins are side or down relative to Bitcoin.
According to some, Bitcoin dominance will reportedly reach 80 percent while altcoin's role in the market is fading, according to Max Keizer, host of RT's Keizer Report. As a result, the former Wall Street trader believes investors should sell their altcoins for BTC.
#Bitcoin dominance 68.2% – vs. 80% – because alts die in favor of BTC. The 2014-2017 era of altos and hard forks is dead. Do not turn last from alti in BTC.
– Max Keizer, tweet poet. (@Maxkeiser) August 6, 2019
Looking at the one-day chart of Bitcoin dominance, it seems that Keiser's tips might be sound. ascending triangle began to form below the one-week time frame on the threshold of the 2017 document (at that time, BTC dominance was at a low of 35 percent).
Even more bullish, Bitcoin has erupted upwards ascending triangle and could be aimed at a 38.7 percent increase which raises it to 80 percent market dominance, similar to what Max Keizer predicted.
Accordingly, TD's sequence indicator gives " bearish green ninth signal. This technical index predicts a correction of one to four weeks. Based on that bearish signals, BTC dominance could fall significantly, allowing altcoins to gain as capital goes to Bitcoin. Nevertheless, trading two candles with a green candlestick above the previous green candle could nullify this bearish a signal given by the TD sequential indicator, allowing the upward trend to continue.
It is worth noting that since the end of 2017, the last four times TD's sequential indicator has given the sales signal (in the form of a green nine) three correct ones.
It first happened in the week of November 6, 2017, resulting in a 25 percent drop from market share of 65.6 percent to 48.5 percent. The second sales signal occurred in the week of March 26, 2018, taking dominance from 50.2 percent to 38.7 percent. The last correction was that in the week of September 17, 2018, which dropped BTC's market share from 58.8 percent to 51.3 percent.
Although Bitcoin dominance is currently in the bearish posture, altcoin dominance sits in the "golden" correction area based on the Fibonacci correction indicator.
Following a correction that began in January 2018, altcoin dominance over the market recently reached correction levels of 61.8 and 65 percent, respectively. This Fibonacci correction zone is central to the trend of altcoin dominance. A significant correction, such as the one just experienced in this area, suggests that a resurgence could occur.
If confirmed, the jump could have the potential to take altcoin dominance to a level of deviation of 50 or 38.2 percent of Fibonacci. However, a break below the gold recovery level is a signal of a trend reversal bullish to bearish, which could lead to a major decline in the market value of altcoin.
Bitcoin developed the double-bottomed pattern of Adam and Eve on its 12-hour chart, which was confirmed at the time it went above $ 10,800. The sample is considered a bullish a turnaround, created after the price of Bitcoin dropped to $ 9,070 on July 17 (forming a V-shaped valley). Then, on July 20, the price rose to $ 11,100, then pulled back to form a wide, more rounded valley, close to the price of the first, from July 23 to August 2.
As buying pressure increased, BTC broke above the middle tip of the double-bottomed Adam and Eve pattern, signaling that it was targeting $ 12,500. On August 6, bitcoin rose to $ 12,330, which is very close to its target bullish reversal formation. Therefore, the double-bottom pattern of Adam and Eve can be considered complete. Upon completion, this form predicts a return to the breaking point, $ 10,800, which could happen at any time as cryptocurrency recently reached a low of $ 11,100.
Meanwhile, the four largest altcoins – Ethereum, XRP, Bitcoin Cash and Litecoin – appear to have entered the consolidation phase as of July 15, 2019. On the 12-hour chart of those altcoins, Bollinger bands appear to be squeezing, indicating that are really consolidating. The clip follows periods of high volatility. The longer the squeeze, the greater the chance of a strong puncture.
If Bitcoin has to align with $ 10,800 support, altcoins could enjoy a price hike, which will align with what can be seen on the prevailing rankings. Nevertheless, the four largest altcoins seem to be in the "no trade" zone, and a breakthrough below the support or above the resistance could help determine the reality of the next "alseason."
The last month Ethereum trades between $ 199 and $ 235. Although it remains in this range, the risk of trading is increasing. Movement with spine volume below $ 199 or above $ 235
Although ETH is still trading in this range, each trade presents an extreme level of risk. A move with a volume run below $ 199 or more than $ 235 will raise the no-trade zone.
Along the same lines, the XRP is stuck between $ 0.30 to $ 0.33 at no significant cost. A break below $ 0.30 could lower it to 0.24 or less, while a move above $ 0.33 could take the XRP to 0.38 or more.
But via Bitcoin Cash since July 15, one can see a higher rise and a greater decline, but this only happens with low trading volume and low volatility. Therefore, it will be wiser to wait for a breakthrough in the level of support or resistance before betting on the direction of the coin.
Finally, Litecoin stock price during the last month was marked by an increase of $ 20 and a drop between $ 83 and $ 103. An increase in volume could allow LTC to trade outside this range, allowing it to clarify whether it would have to go up or down.
Although Bitcoin’s weekly dominance scheme sits at a bearish posture based on the sequential TD indicator, it is still too early to tell if it is bearish the signal will have the potential to trigger the next “alseason”. As can be seen from the 12-hour map of the four altcoins, they have all entered the consolidation phase without any clear indication of which direction they will break out.
Therefore, in the current market conditions, you are waiting for confirmation on Bitcoins bearish dominance signals combined with indicators from Ethereum, XRP, Bitcoin Cash and Litecoin preferred. With the right combination of factors, another season seems possible.
Still, if ETH, XRP, BCH and LTC move below support and BTC continues to solidify dominance, then BTC dominance could reach a dizzying 80 percent, as predicted by Mike Keizer.
Bitcoin is currently # # by market cap 0% in the past 24 hours. BTC has a market cap of $ 0 with a 24 hour supply of $ 0.
Filed under: Altcoins, Bitcoin, Price Watch, Technical Analysis
Waiver: Our writers' opinions are solely their own and do not reflect those of CryptoSlate. No information you read on CryptoSlate should be taken as investment advice, nor should CryptoSlate support any projects that may be mentioned or linked in this article. Buying and trading cryptocurrencies should be considered a risky activity. Before taking any action related to the content within this article, take your due diligence. Finally, CryptoSlate assumes no responsibility in case you lose money by trading cryptocurrencies.