Bitcoin dominance looking weak. Altcoin party on the way..The Bitcoin dominance chart is looking very weak.
- We had a longterm BIG bearish divergence on the daily building on the recent move up.
- Higher timeframes (2D+) looking like a rising wedge.
- The divergence is close to playing out in a downward move.
- We see a kumo breakdown on the 4H (pssst, my body is ready.)
This could be THE spot where crypto markets get very volatile. The big question is: What does this comming breakdown on BTC Dominance mean for the crypto market as a whole?
It could mean:
- BTC breaks down from its meme descending triangle, which will cause dominance to drop. This would mean total BTC cap drops relatively faster than the altcoin cap.
- BTC breaks down from its meme descending triangle and the total altcoin market will pump > This means dominance will break down faster than in my first example.
- BTC goes sideways or pumps AND total altcoin market will pump / pump harder than BTC.
If we look at the Altcoin market cap/BTC chart (not included) we see that MAJOR support is upcomming in the form of a diagonal and horizontal support that cross eachothers paths.
My guess is, that this support OR the 61.8% fib level (another 18% drop on total altcap) on that chart will mark the reversal in the trend of the total altcoin market.
Conclusion: Matching the altcoin market cap with the bitcoin dominance chart suggests that a big altcoin market move is comming up: Short the corn, Long the bluechip alts like ETH, LTC, XRP, EOS and ADA.
Good luck!
