In this episode of NewsBTC’s daily technical analysis videos, we are analyzing Bitcoin dominance (BTC.D) and how the top cryptocurrency might perform in the near term against altcoins.
Have a look below at the video.
VIDEO: Bitcoin Dominance Versus Altcoins – October 20, 2022
We also provide video highlights below, as well as analysis of BTC.D with the Ichimoku and Average Directional Index (LMACD), and other technical tools.
Sideways Phase: Bitcoin beats Altcoins
BTC.D. is showing a slight pause in daily time frames, however, it remains mostly bullish depending on price action and technical indicator. While dominance is higher than the Tenkan-sen or Kijun-sen for the Ichimoku and it has flipped to bullish on LMACD, Dominance is below the Tenkan-sen. Average Directional Index (bottom) shows trend strength decreasing on daily timeframes, and bulls hold the upper hand.
Altcoins have been outperforming Bitcoin | Source: ETHUSD on TradingView.com
Similar Reading: Price Action Falls Flat | BTCUSD Analysis October 18, 2022
Altcoin Season could be over for some time
We can observe that the dominance trend has just begun to turn bullish for altcoins in weekly timeframes that were created with the same tools. The Average Directional Index suggests that this trend may soon grow. The Ichimoku shows dominance above the Tenkansen but not over the Kijunsen. This makes it the obvious next target.
When we look at monthly timeframes Bitcoin dominance has been bullish for alts on LMACD. And the ADX suggests that altcoin season may be cooling. The Ichimoku isn’t very telling, but much like weekly timeframes, the Kijun-sen above could make for a possible next target.
Are Alts able to hold on to 50% of Crypto Dominance?
Trend line TA further indicates that BTC dominance may have retested the neckline a years-old inverse head pattern. This includes the alt season peak in early 2018, which occurred shortly after Bitcoin topped at $20,000. Surprisingly, Bitcoin trades below this level five years after it was first topped in December 2017.
Bitcoin dominance against altcoins could be reversed. This would set off the first Bitcoin monthly buy signal.