Bitcoin dominance forms a triggering rally against other altcoins as the number one cryptocurrency smashed through the $12,000 which gave it enough momentum to surpass $13,000 and revisit last year’s highs so let’s read more in today’s Bitcoin news.
While it smashed the $13,000 region, it caused other altcoins like Chainlink and Ethereum and dozens more to crash relative to BTC. It has left altcoins in a precarious position which are left for dead by the Bitcoin dominance and a possible 30% rally from there. Bitcoin initially arrived after the Great Recession in 2008 and in a few years, the technology itself took a new life in the form of altcoins which was designed to improve the original cryptocurrency in some way. Ethereum added smart contracts while Litecoin wants to improve seed and to loosen up the tight supply so others were created to solve scalability.
There are no altcoins that were able to beat Bitcoin at its own game but the allure of the next big thing in crypto caused the frenzy of FOMO after bitcoin surpassed the $20,000. The growth across the entire crypto industry in both capital and the total coins created which cased the Bitcoin dominance which is a metric that measures the top asset against the total crypto market cap to drop. The metric previously never broke 95% within a year or two that fell to 35% dominance as ETH gained a significant chunk along with XRP and other top assets.
Four years later, Bitcoin is on the way back up towards the high that It broke down from which could all happen with a two-week timeframe close above the middle of the Bollinger Band. Note that the two previous closes above the middle-BB resulted in the over 30% climb each time. Closing below the middle-BB which has sent BTC off the deep end and kicked off the first-ever altcoin season. The inverse head and shoulders bottom on BTC.D peaked as the crypto bubble popped with a breakout of the neckline that took Bitcoin to the 2019 top where the altcoins were decimated during the wake.
Another 30% rally from the middle Bollinger Band which could result from the two-week close above the key level that would take the BTC dominance to as high as 85% coinciding with technical analysis resistance and support level as well as retesting the rising wedge pattern and forming the head on yet another reversal pattern. The Bitcoin dominance forms another rally which combines the technical analysis patterns with the indicator showing how the price action between BTC and altcoins that could play out over the next years.
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