As a seasoned researcher with over a decade of experience in the volatile world of cryptocurrencies, I have seen my fair share of market trends and cycles. The current state of Bitcoin Dominance and the Altcoin market is one that piques my interest, not just for its potential profits, but also for the intriguing dynamics at play.
The dominance of Bitcoin (BTC) has been unable to break through the 57.5% threshold over the past five weeks. As Bitcoin may be nearing its low point versus the US dollar, is it possible that alternative cryptocurrencies might begin to gain traction?
Has Bitcoin Dominance topped out?
Over the period from May 2021 to November 2022, Bitcoin Dominance hit its lowest point at approximately 40%, but it has been steadily increasing since then. The rapid rise of Bitcoin’s price to $73,800 seems to be due in part to Bitcoin continuing to outshine other cryptocurrencies.
Currently, the Bitcoin price is trying to establish a floor compared to the U.S. dollar. If successful, this could possibly offer a boost to an already weakened altcoin market.
A fifth week of rejection for dominance
As a researcher, I’ve been closely monitoring the weekly chart for Bitcoin Dominance. It appears that we’re currently facing a resistance level at approximately 57.5%. While it’s not impossible that we could surge past this and reach even higher levels, it’s important to note that we’ve experienced five weekly rejections so far. This could potentially signal a shift in the trend, suggesting that Bitcoin Dominance might decrease.
The Stochastic RSI at the bottom of the chart is also signalling downside momentum.
Altcoin market cap starting to break trend
The Total3 graph represents the total market value of all cryptocurrencies aside from Bitcoin and Ethereum. This collectively indicates that the altcoin market capitalization is forming a bull flag pattern. There’s a significant horizontal line serving as strong support, which aligns with the 0.618 Fibonacci level. In early August, the market cap had dropped to this support level, thus testing it as a potential foundation for future growth.
As an analyst, I’m focusing on the chart below where you’ll find the Relative Strength Index (RSI) at its base. This index alerts us about oversold and overbought conditions in a financial instrument. Currently, the RSI line falls below the 50 level, suggesting an oversold state – meaning the asset might be undervalued based on its recent performance.
Moving into the altcoins with the best potential upside
When Bitcoin eventually breaks free from its falling pattern, it’s possible that the top-performing alternative cryptocurrencies (altcoins) may surge even more significantly. Identifying the right ones for starting to establish positions might mean the distinction between modest profits and what could become massive returns.
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2024-09-09 17:05