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Bitcoin Weekend Run Breaches $20,000 Mark, Dominates The Altcoins

Even if the cryptocurrency industry crashed in 2022, Bitcoin’s status as the “alpha coin” has remained remarkably stable. With a market capitalization of over $398 billion and a trading volume of $24,180,295, Bitcoin’s dominance in the last 24 hours has increased by 43%.

According to market watchers, the BTC bull market officially began in 2023 and is expected to increase in value. In addition, the United States Consumer Price Index (CPI) was issued earlier this week, showing that the U.S. dollar’s value is decreasing relative to other currencies. On the other hand, the CPI data gave the market the confidence it needed to follow inflation’s downward trend.

In the previous week, BTC dominance increased by almost 2%, returning to a multi-month high as the value breached the $20,000 level.

Bitcoin Shows Bullish Momentum

Rekt Capital says that BTC will surprise investors next week by trading above $21,000. This upswing encouraged traders and investors worldwide to re-enter the Bitcoin market and make some quick bucks.

After BTC officially surpassed $17,000 at the beginning of this week, the outlook for the asset has been more bullish than it was at the end of 2022.

On Friday evening, the price of BTC surged beyond $18,000, then $19,000, and finally pumped to $20,000. The next hours saw a rise initiated by the bulls, which ultimately pushed BTC up to near $21,000 on Sunday.

At this price, bitcoin has made up all of its ground since the FTX-Alameda Research meltdown more than two months ago. Even if it has dropped from its local peak, the price is still well above $20,000. The cryptocurrency’s market valuation is close to $400 billion, with many investors hoping for a new bull run to begin any day.

Fundstrat’s head of digital asset strategy Sean Farrell stated to Bloomberg:

Cryptoassets performed well following the soft CPI print, suggesting that crypto’s correlation to macro is not going away anytime soon

As Bitcoin Surges, Altcoins Retreat

On yesterday’s daily charts, most altcoins showed gains, but those figures are now negative. After increasing by more than 35% in a day and nearly 70% in a week, it has turned bullish and is now moving in that direction. However, it is currently sitting below that level due to the daily decline of 4.5%.

The top 10 daily cryptocurrencies that lost value are Dogecoin (DOGE), Polkadot (DOT), Litecoin (LTC), Shiba Inu (SHIB), Avalanche (AVAX), Cardano (ADA), and Polygon (MATIC).

The value of alternative cryptocurrencies like ADA and DOGE have dropped, by 0.34% and 0.08%, respectively, from their respective 24-hour highs. The value of ADA and BNB has decreased marginally over the previous day. Both coins, however, have seen substantial gains during the past week, rising by more than 21% and 11%, respectively.

Featured image from Unsplash.com, charts from TradingView.com

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WATCH: Bitcoin Dominance And Altcoin Season 2.0 | BTC.D September 7, 2022

In this episode of NewsBTC’s daily technical analysis videos, we are going to look at Bitcoin dominance and the possible signs of a surprise altcoin season developing during the bearish macro backdrop.

Take a look at the video below:

VIDEO: Bitcoin Dominance Analysis (BTC.D): September 7, 2022

For today’s video, we are going to look at Bitcoin dominance on monthly and weekly timeframes. There is potentially a notable breakdown in progress that – based on its significance – could be telling of something bigger: a possible altcoin season that no one is expecting.

Bitcoin Dominance To Submit To Altcoins

Typically, altcoins only perform well during a bull market. So for BTC.D to be breaking down is very unusual considering the current macro backdrop.

Still, BTC dominance is breaking down from a diagonal trend line on price and the Relative Strength Index. The LMACD is also clearly displaying a struggle between bulls and bears. Or more accurately put, Bitcoin versus altcoins, with altcoins currently taking the lead.

Is an altcoin season about to appear? | Source: CRYPTOCAP-BTC.D on TradingView.com
The Signal From The Last Alt Season Is Back

Moving to weekly timeframes on Bitcoin dominance, trend lines become a little more clear. Price is breaking down from both diagonal and horizontal support of great importance. Comparing the past cycle, we can see a similar setup where dominance could make a lower low, while the RSI forms a higher low and bullish divergence.

On the weekly Ichimoku, Bitcoin dominance has been rejected by the cloud. The previous time price dropped from the cloud, it took BTC dominance from 70% to where we are currently at around 39% market share. 

Will we get a repeat of the last altcoin season? | Source: CRYPTOCAP-BTC.D on TradingView.com

Related Reading: WATCH: Weekend At Bitcoin’s: Will The Dead Crypto Make A Comeback? BTCUSD September 2, 2022

Could This Be A Possible Target For Crypto Market Share?

So, where then could our target possibly be in terms of new lows set in Bitcoin dominance? One potential area, is yet another retest of neckline resistance turned support from the last bottom formation – an inverse head and shoulders. The target would take BTC.D to around 32% dominance.

Could 32% dominance be the potential target? | Source: CRYPTOCAP-BTC.D on TradingView.com
How Ethereum And The Merge Might Influence BTC.D

To further illustrate why this setup could come to fruition, we have flipped BTC.D upside down and compared it with ETHBTC. The primary factor driving a historical altcoin season is the Ethereum Merge.

In the chart below, we can see that Ethereum is very much responsible for much of the current Bitcoin dominance chart formation. This makes sense considering Ethereum is the second largest cryptocurrency by market cap and has the largest impact on this metric outside of Bitcoin itself.

Bitcoin dominance is driven heavily by the ETHBTC pair | Source: CRYPTOCAP-BTC.D on TradingView.com

Learn crypto technical analysis yourself with the NewsBTC Trading Course. Click here to access the free educational program.

Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice.

Featured image from iStockPhoto, Charts from TradingView.com

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Bitcoin Dominance Remains High As Market Sell-Offs Settle

Bitcoin dominance over the market has still not receded even as the price has fallen below $30,000. Just as BTC had taken a hit, so had the altcoins. This had given the pioneer cryptocurrency more leeway to eat back into the market dominance. Even though the market has been brutal to investors in the past week, it is starting to level out and as the end of the month draws closer, indicators are starting to point towards better forecasts.

Bitcoin Still On The High Side

With Bitcoin, there has never been a dispute regarding its dominance in the crypto space. However, this dominance has since been declining as more digital assets gain ground. It was expected that cryptocurrencies such as Ethereum would continue to win more market share but that has not proven to be the case.

Related Reading | Market Sentiment Dangerously Negative As Crypto Fear Index Drops To Two-Year Low

Instead what has happened has been that bitcoin dominance has climbed back up towards seven-month highs. It is currently sitting above 46% and the last time the dominance was this high was back in October 2021 following the September crash.

This dominance is also evident in the performance of the digital asset compared to the other indexes in the space. The month of May had hit all of the indexes hard, resulting in double-digit losses across the board but BTC has held up better in comparison to its counterparts.

BTC dominance recovers above 45% | Source: Market Cap BTC Dominance on TradingView.com

For the month of May, Bitcoin’s price is down 24%, a huge fall. But the small, mid, and large cap indexes have all done worse. The Large Cap Index is down 27% since the month began and the Mid Cap Index is down 31%. In true Small Cap Index fashion when the market is in a downtrend, it has recorded the most losses with a 37% decline since the month began.

Altcoins Not Looking Too Hot

The altcoins market is one that attracts investors due to the fact that it holds high promise for maximum returns. This has seen the market bloom throughout the bull rallies. But just as they are likely to run high during bull markets, they are also likely to incur the most losses during market sell-offs. This has been true so far in recent months. Whereas bitcoin has been able to retain above 40% of its all-time high value, a lot of altcoins cannot say the same. 

BTC outperforms other indexes | Source: Arcane Research

An example of this is Cardano. ADA had recorded one of the largest rallies during the 2021 bull market but it has also been one of the worse-hit cryptocurrencies in the bear market. Since hitting its all-time high of $3.10 in September, it has since lost over 84% of its value.

Related Reading | Bitcoin On-Chain Activity Throttled After LUNA Collapse

Dogecoin, an investor meme coin favorite, is down more than 89% from its all-time high. Solana is down more than 80%. In comparison to these, bitcoin has been one of the best performers in the market, which explains why its dominance has continued to grow.

Featured image from The Washington Independent, charts from Arcane Research and TradingView.com

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Bitcoin dominance falls under 40%

While Bitcoin critics claim this means that BTC is losing its first-mover competitive advantage, others are anticipating the “altcoin season” is just around the corner, or might even be already underway.

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Bitcoin Dominance Down As Market Hits $2 Trillion, Altcoins Are Taking Over

Bitcoin market dominance continues to decline as the markets make their way back up the charts. The top cryptocurrency has seen its market share consistently dropping as investors get interested in altcoins. Over the five years since it has been in operation, Ethereum now has a bit under half the market dominance of the digital asset. This has translated to altcoins like Ethereum rallying despite what direction the price of bitcoin is headed.

Now, once again, as is the same with all bull markets, the altcoins are breaking away from the influence of bitcoin. As the bull rally continues to rage on, alts are creeping up to steal more market share for themselves. Just this year alone, BTC has lost over 30% of market dominance. Starting out the year in the 73% range, to where it now sits at 44.13%.

BTC market cap dominance down to 44% | Source: Market Cap BTC Dominance on TradingView.com

Related Reading | Crypto Market Cap Inches Closer To $2 Trillion, What To Expect From The Market

Although BTC continues to have the highest market cap of all, alts are seeing increasing numbers. Ethereum’s market cap has seen another upward trend that is sending the asset’s total market cap towards $400 billion. Coming hot on the heels of the London Hard Fork that brought increased interest into the asset.

Total Market Cap Hits $2 Trillion

The crypto total market cap took a severe beating down three months back when it crashed down from its all-time high of $2.4 trillion. Spending the last three months in a perpetual state of sluggish movement that looked to be the beginning of a brutal bear market.

Total crypto market cap hits $2 trillion for the first time in months | Source: Crypto Total Market Cap on TradingView.com

A bounce back in the prices of cryptocurrencies all across the market has seen the market cap recover. Breaking the $2 trillion mark for the first time since the crash and now, indicators show that the market could be on its way to breaking the record high. The rebound in the crypto market cap has now seen renewed interest in the market.

Bitcoin and altcoins alike have rallied in the past couple of weeks, leading to a breaking of $2 trillion. More projects are fueling the interest of their investors.  Projects like Cardano and Ethereum continue to be top of mind in the market. Their continued dedication to making their network optimal drives continued faith in the market.

Altcoins Will Rally With Or Without Bitcoin

The market dominance of BTC shows that altcoins are on their way to being completely independent of what is happening to the top crypto. Prices of cryptocurrencies have historically always rallied behind bitcoin. But it seems that that era is coming to an end.

Related Reading | Why A Shocking Altcoin Season Could Be On The Horizon

Soon, some altcoins will have taken enough market share from bitcoin to put them on almost equal footing. This will mean that the prices of these alts with high market dominance will also determine the direction of the market, regardless of what direction BTC is facing.

This is why “alts season” is a popular saying in the market. Every time altcoins take market share from the top cryptocurrency, the market sees a rally in the prices of alts. Whereas at the same time, the price of bitcoin could be stagnant or even be experiencing a downward trend while alts record massive gains.

Featured image from Personal Financial, charts from TradingView.com

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Why Another Wave Up For Altcoins Is Probable According To BTC Dominance

BTC dominance has always had an inverse effect on the price movements for altcoins. Historically, BTC dominance determines the direction the value of altcoins swings in. Bitcoin has so far maintained majority dominance on the market. But as more time passes, that dominance goes down as altcoins see more demand.

BTC dominance simply shows how much demand there is for bitcoin compared to altcoins. The more BTC dominance rises, the lower the demand for altcoins. This means that for altcoins to rally up further, bitcoin demand has to go down.

Related Reading | Ethereum Breaks 200,000 Validators Milestone, Over $14 Billion Now Staked In ETH 2.0

Over the years, this dominance has decreased as more and more investors put money in altcoins. One reason for this being a lot of investors feel they have missed the boat with bitcoin and thus are trying to get in early enough on altcoins. Others revolve around the new technological advancements being made by altcoin projects. Hence, investors are putting money into projects that they believe in.

How Current BTC Dominance Affects Altcoins

BTC dominance has continually declined over the past couple of months. Currently sitting at 48.97% dominance, bitcoin now has less than half of the entire market dominance. This trend shows that demand for altcoins is on the rise. So, BTC dominance will continue to see declining numbers.

As the dominance declines, the value of altcoins will continue to go up. Market trends indicate that BTC dominance is poised to drop following the latest recovery.

BTC dominance poised for a decline

BTC dominance currently sits at less than 50% | Source: Market Cap BTC Dominance on TradingView.com

When this happens, the demand for alts is expected to pick up very quickly. Leading to another upward wave for the altcoin market. Coins like the number 2 coin Ethereum are forecasted to gain even more dominance as the project gains more notoriety among the investment sector. With ETH 2.0 moving the network to proof of stake and using significantly less power to mine. The reduced environmental impact will mean that mining will become less of a problem.

What This Means For Bitcoin

Alts gaining more dominance does not negate the value of bitcoin. Currently, there are over 5,000 coins in the market all vying for market share. And some of these projects come with some very innovative ideas and tech. Thus, it is expected that as time passes, some of these projects will become popular. Therefore gaining more market share as more investors come into the market.

Related Reading | Fast Money’s Brian Kelly Remains Bullish On Bitcoin, Here’s Why

The declining BTS dominance just means that bitcoin is not the only digital asset investors are rushing to get into. Despite decreasing dominance, bitcoin still remains the number 1 coin in the market. Being the first cryptocurrency and the reason why cryptocurrencies are currently so popular.

But as alts rally in what is usually known as “alts season,” bitcoin will continue to see declining dominance. This will translate to the price of altcoins rallying massively as interest in them grows.

Featured image from CryptoPotato, chart from TradingView.com
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Bitcoin Loses Crucial Support Never Broken During Last Bull Run

With Bitcoin price falling to the low $40,000 range, debate has picked up on if the once trending cryptocurrency’s bull run is now over. There’s no truly telling for sure, however, this time is very different than the last bull market.

Why? Because Bitcoin price just lost a key level that never once saw a weekly close below during the last market cycle. Could this be it for the bullish impulse – long before predictions of $100,000 or more per coin are ever reached?

Crypto Cycle Could Conclude With Key Level Lost From Past Trends

Cryptocurrencies are a highly speculative asset class, regardless if adoption is picking up or not. Sure PayPal is now game, as is Visa and an assortment of others, but the volatile assets have a long road of price discovery ahead.

Although most recent crypto participants only have known “always up” as the direction of the trend, things have recently taken a turn downward.

bitcoin bollinger bands close

BTC has lost the middle Bollinger Band or 20-week SMA  | Source: BTCUSD on TradingView.com

But is this “the top?” It’s hard to say. One thing for certain, however, is that Bitcoin price has now lost the middle Bollinger Band – also the 20-week SMA.

Passing through the mid-BB in and of itself can be a powerful buy or sell signal.

Related Reading | Bitcoin Dominance Dives To Lowest In Years, Altcoin Season Is Finally Here

However, the fact that during the last bull run Bitcoin weekly never closed below it, it could be a sign that the structure of the bull market has been broken. bitcooin bollinger band zoomed bull

Never once was there a meaningful weekly close below the mid-BB  | Source: BTCUSD on TradingView.com

Will Bitcoin Price Snap Back Into A Bull Phase? What To Look For

The Bollinger Bands are a tool created by legendary trader John Bollinger. The tool has a variety of uses, namely measuring the volatility in the price action of assets like Bitcoin.

The technical analysis indicator consists of a 20-session SMA as mentioned, and two standard deviations of that moving average that widen and contract based on volatility.

When they tighten or “squeeze” it can be a sign a massive move is coming. These large moves can begin or continue a trend after a long pause.

bitcoin bollinger bandsThe recent peak has more similarities with 2018 and 2019 than 2017  | Source: BTCUSD on TradingView.com

Bitcoin weekly timeframes have tightened during the recent consolidation phase, and a breakout has started. However, the direction appears to be down according to the middle-Bollinger Band. Passing through the middle-band typically results in several touches of the bottom band to find support.

Like last major “tops” the bottom bands widened to extremes, but when they began to tighten back up, the trend was over. A rounding of the top bands also is a sign of the tools suggesting a break in the bull run.

Related Reading | All About The Bollinger Bands

As for when Bitcoin is ready to turn bullish again, it could be worth waiting for the cryptocurrency to reclaim the middle-BB, which outside of Black Thursday and now, have always been a sign of a bull rally in the making.

With Bitcoin now below the key level, the case for a bear phase, however, is now just as strong.

Featured image from iStockPhotos, Charts from TradingView.com
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Bitcoin Dominance Dives To Lowest In Years, Altcoin Season Is Finally Here

Bitcoin price was rejected from above $55,000 and is now back to sinking lower. Meanwhile, altcoins like Ethereum continue to climb complete unaffected by the leading cryptocurrency by market cap.

The recent divergence between the top dog and the rest of altcoins, has resulted in Bitcoin dominance taking a nosedive to levels not seen since 2017 and 2018. Could this be the official start of altcoin season before the market cycle starts all over again?

BTC Dominance Returns To Levels Not Seen Since Last Crypto Bull Market

It has been more than 1000 days that have passed since the last time BTC dominance was below the 50% level, signaling that altcoins had taken over the crypto market.

The past 1000 and then some days have been completely dominated by Bitcoin instead, rising to as high as 73% peak dominance at the end of 2020.

Related Reading | Ethereum Closing In on $2,800 As ETH 2.0 Deposit Contract Hit New ATH

BTC.D, a metric weighing the top cryptocurrency’s market cap against the rest of the space, is now back below 50% and could be ready to set new lows if an altcoin season truly is upon us.

Altcoins capturing much more dominance this time around makes sense, as there are easily several more times the coins that have appeared since, and each market cap individually is ballooning.

bitcoin dominance altcoin season

A weekly close below that box starts altcoin season | Source: CRYPTOCAP-BTC.D on TradingView.com

What Altcoin Season Means For Bitcoin, Ethereum, Litecoin, And Other Top Coins

If altcoin season really is here, there are a few things that crypto investors can expect according to past cycles. Altcoin season’s start doesn’t always mean that Bitcoin’s run is over.

During the 2017 bull run, there were two distinct altcoin seasons, with only one ending the historic crypto market cycle. Altcoins topped much after Bitcoin, which is a scenario that could be coming into play now.

Related Reading | The Rise Of Dogecoin: The Good, Bad, And The Ugly

But with Bitcoin still so bullish, just because altcoin season is here doesn’t mean the bull run for BTC is over. Instead, altcoin capital could flow back into BTC, propelling the top brass crypto asset even higher.

Once the coin then tops out for the grand finale cycle peak, another altcoin season could act as exit liquidity before the cycle ends, and it all starts to repeat again.

The biggest and most respected altcoins like Ethereum and Litecoin would run first, then from majors money will flow into mid-caps, and eventually risk will venture into small-caps for moonshot-type gains.

The most important thing is to get out when it looks like things are about to end, as altcoins tend to collapse by as much as 99% when they run out of steam eventually, and momentum turns downward instead.

Featured image from Pixabay, Charts from TradingView.com
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How Bitcoin Dominance Bullish Engulfing Could Signal An End To Altcoin Season

Bitcoin price is diving currently, shaking up the crypto market as a whole. In addition to the correction in the top cryptocurrency by market cap, altcoins have taken an even more severe beating.

With top alts like Ethereum and Litecoin are seeing an even further drop on BTC trading pairs, Bitcoin dominance has formed a bullish engulfing candle just as a key technical indicator reach overheated status. Here’s how that could put an abrupt end to the ongoing altcoin season.

Bitcoin Price Drop Causes Altcoins To Flop

Bitcoin is the first ever cryptocurrency that an entire industry was built from since, and anything that isn’t BTC is considered an altcoin. Ethereum is currently the king of that camp, and is outpacing Bitcoin in performance since its inception.

But due to first move advantage and just how dominant Bitcoin is, it represents more than 50% of the entire crypto market cap. The BTC dominance metric was created to measure the rest of the crypto market and its weight compared to all altcoins.

Related Reading | Following Bitcoin “Reset,” It’s “Off To The Races Again”

BTC dominance has dropped by 18% since end of 2020 highs, leaving a red streak behind. However, during today’s crypto market bloodbath, the metric began to make a comeback and has formed a bullish engulfing candle.

A bullish engulfing candle is a type of Japanese candlestick formation, that typically suggests a short term reversal is in the coming. It forms when after a sharp bearish move, sellers are overwhelmed by a sudden surge in bullish buying. It is then up to bulls to continue the reversal.

bitcoin dominance btc.d reversal bullish engulfing

A bullish engulfing appears as daily RSI reached oversold conditions | Source: CRYPTOCAP-BTC.D on TradingView.com

BTC Dominance Reversal Could Put An End To Alt Season

Coinciding with the bullish engulfing candle pictured above, the daily Relative Strength Index fell sharply into oversold territory. If a reversal plays out in BTC dominance, whatever altcoin season that’s been going on recently, will be over.

Adding more credence to the theory of further reversal in the relationship between Bitcoin and altcoins, on weekly timeframes a hidden bullish divergence has formed, just as BTC.D touches down at the bottom Bollinger Band.

Bitcoin dominance hidden bull div

A bull div on the RSI has formed as dominance falls to Bollinger Band support | Source: CRYPTOCAP-BTC.D on TradingView.com

Divergences occur when price action moves opposite a technical indicator – in this case the Relative Strength Index again on weekly timeframes. Although daily has fallen into completely oversold levels, weekly either has more to go, or buyers are secretly showing up ready to stage a reversal.

Counter Point | Why Bitcoin Dominance Is No Longer Relevant To Crypto

If bulls can begin the comeback starting with a bullish engulfing today, and close out next week with a powerfully bullish move, a morning star doji pattern will be left on weekly charts, adding yet another signal that an extended reversal could result.

Any reversal in BTC.D, could either have Bitcoin leaving alts in its dust, or the coins crash far further than the top cryptocurrency does on its way back down. All that’s left to do, is wait and see.

Featured image from Deposit Photos, Charts from TradingView.com