Cryptocurrency

Bitcoin dominance Chart ends the Altcoin Season in a disaster?

Bitcoin currencies, as the oldest of the still-young Crypto. Some interpret this as an advantage, because BTC has a “First Mover Advantage”. Others see it more as a disadvantage, because the Kings Coin could be other Crypto-projects are technically inferior. Nevertheless, you can’t argue that Bitcoin currencies is to be the undisputed number 1 of all Crypto, and in the overall market sets the tone. The BTC price can almost be regarded as an index of the entire Crypto-market. Very rarely is it the case that the number 1 increase in the price of the Altcoins do not tighten. However, the Altcoin Season of the last few weeks, in the rare case occurred that the rates of many other Cryptocurrencies have been rising faster than BTC, has missed the Bitcoin dominance of a scratch. A chart analysis shows that it maybe could be. The Altcoin Season takes a disastrous end?

Bitcoin exchange rate strong – Altcoins more

The Start of the year 2020, and thus the beginning of a new decade for Bitcoin was almost unbeatable. Anyone who has seen the last few weeks in the Crypto area, the rally to this day is still well in the head: BTC started the year at just under 7,000 USD and was gradually able to make on the floor, he in the 2. Half of the year, had lost.
The brands fell in the blink of an eye: only the 8,000, then a short time later, the 9,000 he USD brand. A few days ago could be finally crossed the magic $ 10,000 limit.
However, despite this strong Performance, had to give Bitcoin against the Altcoins beaten. It was to observe the rare phenomenon that many of the crypto currencies stronger in the course increased, as the number 1. Here is a list of the price increase of a few Altcoins since the beginning of the year and, compared to that of Bitcoin. A clear case of an Altcoin Season:

Bitcoin: 37%
Ethereum: 70%
Ripple: 41%
EOS: 88%
Litecoin: 76%

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Altcoin Season prior to the bloody end?

Many investors in the Crypto area are not only asking themselves, how the Bitcoin price is going, and whether he can keep it over the 10,000 mark. An equally interesting question is how to do it with the Altcoin Season continue: continue or take a quick the end?
A look at the Chart of the so-called “Bitcoin dominance” (the relative ratio of the market capitalization of BTC compared to all the Altcoins) is for all the Fans of Ethereum, Ripple and co. Bad guess.
Of course, the Bitcoin domination had to give in the last weeks a lot. This fell from 72% to 64%. But from the looks of it, could reverse the Trend again, which would mean a bloody end to the young Altcoin Season 2020. The Chart of the Bitcoin dominance is in a so-called “falling wedge Formation” and is interpreted in the rule as bullish, meaning it is expected by many that the Chart breaks out to the top.

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Should this happen, it could mean either that the Bitcoin price will rise more than that of the Altcoins, or in the worse case that the BTC price will fall slower than that of the Altcoins. Of course, nobody knows exactly and it is only conjecture here, do.
Overall, the picture of the last weeks should not fool you, however. Since the end of the last Bullruns and then the low point of the Bitcoin dominance below 40%, was able to fight them back to said values above the 70% mark. The case should prove to be the end of wedge-Formation as a right, could develop the return.
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(Image Source: Shutterstock)
The contents of this article in no way constitutes Investment advice.

About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.