Insane Divergence
Since I published my last idea related to the divergence between BTC and altcoins (linked below), the divergence has only grown larger. Bitcoin has continued to move parabolically (above the 10,000 USD level), while most major altcoins remain flat or moved to the upside at a much less convincing rate.
This level of divergence has not been seen since the 2017 bull market, during which Bitcoin approached its peak while altcoins remained flat.
While history may not repeat itself, this is indicative that most major altcoins have depreciated to severely oversold levels in terms of their BTC pairs. With this most recent correction from 14,000 to (currently) 11,000, Bitcoin dominance has also indicated a possible top at the mid 60's % range.
Market participants should keep an eye out for a potential shift of capital from Bitcoin to the major altcoins, as major altcoins have much room to grow if this divergence with BTC is to shrink. I predict that this will take place in the coming month, if not days or weeks.
This level of divergence has not been seen since the 2017 bull market, during which Bitcoin approached its peak while altcoins remained flat.
While history may not repeat itself, this is indicative that most major altcoins have depreciated to severely oversold levels in terms of their BTC pairs. With this most recent correction from 14,000 to (currently) 11,000, Bitcoin dominance has also indicated a possible top at the mid 60's % range.
Market participants should keep an eye out for a potential shift of capital from Bitcoin to the major altcoins, as major altcoins have much room to grow if this divergence with BTC is to shrink. I predict that this will take place in the coming month, if not days or weeks.
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