Bitcoin Dominance Rises As Market Turns Red, What Does This Mean For Altcoins?

  • BTC.D price rises as altcoins experience a bad day in crypto. 
  • BTC.D tries to surpass the 8- and 20-day Exponential moving averages, while altcoins battle to maintain their support. 
  • BTC.D is expected to rally up to 48%. This could cause more problems for altcoins. 

Altcoins experienced relief as Bitcoin Dominance has (BTC.D), which is below 40%, allowing them to rebound when the market improves. Bitcoin Dominance, (BTC.D), rising from the ashes could lead to altcoin prices suffering greater pain than anticipated if they rise above 50%.

Bitcoin Dominance measures the proportion of total cryptocurrency values that are made up Bitcoin. Its basic premise is that as BTC’s dominance increases, the value of altcoins decreases.

State Of The Market

The Market Situation | Source: On Coin360.com

The crypto market cap looked poised to rebound to its highest point with relief bounces, but this did not happen as altcoins suffered a decline in price. Many altcoins lost their support, and there is more chance that the BTC.D price will rise.

Bitcoin Dominance. (BTC.D.) Analysis of the Weekly Chart

BTC.D Weekly Movement Source: Tradingview.com| Source: BTC.D On Tradingview.com

Altcoins are showing as much strength and rally as Bitcoin. Others have seen double-digit gains. This is in addition to the fact that BTC.D fell because there was not much Bitcoin effect at price retracement. 

BTC.D will break its long-standing downtrend. This may impact altcoin prices. BTC’s performance in a downtrend can have an effect on altcoins and how long it takes for them to recover from it.

BTC.D witnessed a rally of 72%, despite BTC seeing good price movement. BTC.D falling is bad news for most altcoins, as it usually impacts their upside movement and causes more falls when they retrace.

Altcoins perform better when BTC.D is less than 30%. This allows altcoins faster to respond to price drops when BTC prices drop. BTC.D closes at 41.5% and breaks, which could cause altcoins to suffer greater pain when BTC.D retraces its value.

Weekly resistance for BTC.D – 41.5%.

Weekly support for BTC.D – 40%.

The Daily Price Analysis of BTC.D (1D) Chart

BTC.D suffered rejection below the 48% mark in daily trading. The value fell to 38% where it provided support and bounced back. BTC.D. continued to trade in a range as it made an ascending triangle, with the price breaking out. Altcoins would suffer greater price drops if BTC falls in value if they close below 41.5%.

Daily resistance for BTC.D – 43.1%.

Daily support for BTC.D – 38.5%.

Featured image from zipmex. Charts from Tradingview 

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