although Bitcoin continues to suffer As far as the U.S. dollar is concerned, the top cryptocurrencies also continue to lose their share of market capitalization. In fact, with the recent support level being broken, BTC’s dominance may be aimed at historical lows.
The historical lows of BTC dominance may mean that an unprecedented altcoin season may be approaching. Below are detailed information on the trade-offs between Bitcoin and other crypto spaces and how it affects the performance of altcoins.
Bitcoin continues to lose its dominance in the cryptocurrency market
At one point, Only bitcoinWith the development of the industry, an indicator called BTC dominance was born, which makes the weight of top tokens more clearly compared to the rest of the market.
Before 2017, Bitcoin accounted for 95% of the entire cryptocurrency market, but it fell to a low of 35% in less than a year. Altcoin season record on file.
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After reaching such extremes in 2018, Bitcoin has recovered more than two-thirds of its market value by 2020. The dominance reached nearly 70%, and it reversed sharply throughout 2021.
At the end 2021 candle of the year, Officially broke through the trading range of several years. In the six-month BTC.D chart, the clearly defined range is more obvious. It can create the necessary conditions for an unprecedented altcoin season.
The yearly (left) and six-month (right) BTC.D chart | Source: CRYPTOCAP-BTC.D on TradingView.com
The unprecedented altcoin season may end with a 32% advantage
With a decisive close on the high time frame, the lower time frame pattern can provide clues that the dominant position may bottom out again.
Related Reading | Bitcoin is flat: studying rare bull market correction patterns
The head-and-shoulders goal pushed BTC.D to the dotted line, reinvigorating the altcoin, but still below the frenzy during the peak of 2017/2018.
A descending triangle could target 32% dominance | Source: CRYPTOCAP-BTC.D on TradingView.com
As the potential descending triangle collapses, the measurement rules will enable the structure to achieve an advantage of around 32%. This goal will imply surpassing the historical lows set many years ago-and create the desired atmosphere for the aforementioned altcoin season frenzy.
But all this may come at the expense of Bitcoin and its undisputed position as the number one cryptocurrency by market value.
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Featured image from iStockPhoto, Charts from TradingView.com