The Bitcoin price is struggling to break the resistance at $ 50,000. Part of this could be due to the weakness of altcoins. The most recent technical structure based on the longest timeframes suggests alts may continue to beat BTC dominance. But, altcoin season could go on for a while longer.
Bitcoin dominance and technical analysis using this metric
Technical analysis is subjective. There are many critics of the practice, but even those who accept it have doubts.
A number of industry experts don’t believe BTC dominance (a measure that weighs Bitcoin against other crypto spaces in terms of market shares) has any value in crypto analysis.
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For example, Ethereum could outperform Bitcoin. If this happens, dominance could fall accordingly. This is made more apparent by the sheer number of unique altcoins available today. Some even argue that the metric itself was once useful, but less so due to dominance that doesn’t include the vast world of NFTs or the constant sea of new DeFi projects popping up.
For those who believe, the recent altcoin seasons Could have been predicted with some degree accuracy. If the metric keeps carrying weight, the altcoin season might last a few months.
Could altcoins be able to beat Bitcoin for a while?Source: | Source: TradingView.com - CRYPTOCAP.BTC.D
Why the Altcoin season could be extended for several months
BTC is now accepted for payment It has established a wide range negotiation optionsThe dominance ranges from 70% to 38%. Altcoin sentiment was at its lowest relative to Bitcoin. However, the trading range failed to recover and tipped towards the lower end.
BTC.D stopped just before the previous bottom. However, it follows a pattern that was present in the last cycle. This suggests that the lower limit will be reached, and that the lows will be swept away, possibly leading to a new range.
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Technical data supports a fall in the bearish area – or oversold – on Relative Strength Index. As Bitcoin struggles against resistance, the crypto’s entire market cap has also entered bullish RSI.
The LMACD is still completely coloured on the histogram. It is not at the levels, lengths or oversold of the previous market cycle. All indicators indicate that altcoins may outperform Bitcoin in the next few months.
A monthly candle that is close to the trading range in the chart could signal the end of altcoin season. If this happens, putting any crypto capital back into BTC may be the best way to make money again. There could be extreme volatility on BTC’s dominance chart as a result of the ongoing battle between altcoins and Bitcoin.
Featured image taken from iStockPhoto. Charts from TradingView.com