📊Why the dominance is falling? BTC and ALTs future.
Hi, friends! You probably noticed that altcoins don't follow Bitcoin like they used to, and sometimes even grow during its fall. Why does this happen and what to expect from crypto with such dominance? I explained it in detail in this idea.
Dominance is an index that shows what % of the total cryptocurrency capitalization Bitcoin have. The more dominance Bitcoin has, the worse altcoins feel.
When dominance falls, especially at market highs, the altseason begins. At that point, money flows from Bitcoin to altcoins.
Typically, when Bitcoin falls >50%, Bitcoin's dominance should rise because retail investors are often afraid to invest and sell all their crypto. But that's not the case this time.
Retailers are actively buying cryptocurrency along with whales. I see from on-chain data that the number of holders with wallets over 10,000 BTC is growing, but so is the number of wallets with less than 1 Bitcoin.
This atypical behavior of retail investors confuses the whales. Full-fledged crypto market is about 11 years old (very young market). It is interesting to watch how it grow and change its patterns and cycles, just like a person.
I was expecting a dominance of about 50%, but so far we've hit highs of about 48.5% (it was very close), after which the dominance has dropped. Like I said, it's atypical at market bottoms and shows that cycles change.
We should expect the growing of dominance when BTC reach tje bottom and starts to grow by 50-60%. After this the dominance can return to 50%. All money starts to flow into BTC and alts will not the pump till BTC not reach the ATH.
As the market behavior changes, so do the new opportunities, which I will talk about further in the ideas.
💻Friends, press the "like"👍 button, write comments and share with your friends - it will be the best THANK YOU.
P.S. Personally, I open an entry if the price shows it according to my strategy.
Always do your analysis before making a trade.
Dominance is an index that shows what % of the total cryptocurrency capitalization Bitcoin have. The more dominance Bitcoin has, the worse altcoins feel.
When dominance falls, especially at market highs, the altseason begins. At that point, money flows from Bitcoin to altcoins.
Typically, when Bitcoin falls >50%, Bitcoin's dominance should rise because retail investors are often afraid to invest and sell all their crypto. But that's not the case this time.
Retailers are actively buying cryptocurrency along with whales. I see from on-chain data that the number of holders with wallets over 10,000 BTC is growing, but so is the number of wallets with less than 1 Bitcoin.
This atypical behavior of retail investors confuses the whales. Full-fledged crypto market is about 11 years old (very young market). It is interesting to watch how it grow and change its patterns and cycles, just like a person.
I was expecting a dominance of about 50%, but so far we've hit highs of about 48.5% (it was very close), after which the dominance has dropped. Like I said, it's atypical at market bottoms and shows that cycles change.
We should expect the growing of dominance when BTC reach tje bottom and starts to grow by 50-60%. After this the dominance can return to 50%. All money starts to flow into BTC and alts will not the pump till BTC not reach the ATH.
As the market behavior changes, so do the new opportunities, which I will talk about further in the ideas.
💻Friends, press the "like"👍 button, write comments and share with your friends - it will be the best THANK YOU.
P.S. Personally, I open an entry if the price shows it according to my strategy.
Always do your analysis before making a trade.
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