MASTER Bitcoin Dominance In THREE SIMPLE STEPS. Understand the three HOLD States
Bitcoin dominance level and chances for a new altcoin season
Bitcoin dominance has declined over the past 229 days
If the indicator falls below 62.5%, the bearish momentum may accelerate.
Litecoin is trading near record lows.
Bitcoin’s dominance has been declining over the past 229 days. This trend initially led to the rise of many altcoins and speculation about the start of the altcoin season. However, their bullish momentum began to fade from February, never managing to return to the highs reached during the 2017 season..
However, recent market movements have brought back the anticipation of a new season of alternative coins to the stage. Well-known trader @Damskotrades tweeted three charts showing: Bitcoin dominance level, altcoin dominance level and Litecoin dynamics. Referring to a number of factors identified on the charts, the trader assumes that a new season of altcoins will begin soon..
1. Bitcoin Dominance bearish break down at the range high.
2. Altcoin Dominance Range low reclaim & bullish market structure break.
3. LiteCoin / Bitcoin sitting at Monthly Range low support.
The @Altcointraders_ are ready to buy the ALTBTC dip!
Are you? pic.twitter.com/uGYm8URWG6
– CryptoAmsterdam (@damskotrades) April 19, 2020
Below we will analyze each chart to determine the odds of the start of a new season of alternative coins..
Bitcoin dominance level
Bitcoin dominance has been declining over the past 229 days, namely since September 5, 2019, when it peaked at 73.9%.
A very important trading range is indicated by the levels 62.5% – 52.5%. The indicator was inside this channel from September 2018 to July 2019, and during this period, altcoins have grown in value..
The price reached the resistance level of this range on February 24 and began the rally, which culminated in reaching the 200-day moving average (blue arrow). Since then, the rate has been declining.
If the dominance level returns to the range, it could mean an early start to the altcoin season..
Long-term charts show that the price will eventually dip below the lower end of the range. There are two reasons for this:
First, there are signs of rejection above the 69% resistance level. As the reading dipped below resistance, a false breakout signals a bearish outlook.
Second, the dominance level has broken down the long-term upward support line, which has become resistance. This is also a negative signal..
The Litecoin chart shows that the price is in the area of ₿0.0059, where the lows of the monthly range pass. Also in the immediate vicinity are record lows.
In previous cases, upon reaching this zone, quotes reversed and increased by 470%, 290% and 346%, respectively.
The maximum of the monthly range is at ₿0.016, and if an upward movement starts, the price will at least reach this level.
In early 2017, the price dropped sharply below the low of the monthly range, but soon rebounded and began a bullish move. It is possible that this scenario will repeat itself..
So, Bitcoin’s dominance level has been steadily declining since September 2019. If the indicator falls below 62.5%, the bearish momentum may accelerate, which in turn will lead to the rise of altcoins. One of these coins is Litecoin, which has almost reached a record low and is likely to turn north soon..
All information, contained on our website, published on the principles of good faith and objectivity, and for informational purposes only. The reader bears himself full responsibility for any actions, committed by him on the basis of information, obtained from our website.