BTC dominance has been on the rise since mid-January. Exactly from this period, the price of BTC against the dollar fluctuates in a sideway structure. What can this mean for altcoins and how long can this dominance of the main cryptocurrency continue to grow?
In the picture below we can see the graph of dominance and itself BTC against the USD. The yellow vertical lines represent the extremes overdraft on RSI and local minimum dominance. In other words, the market was so overbought at these points that it hit a long run. How was it reflected in the price?
BTC on a long term bottom?
On the BTC prices this was reflected in the fact that whenever the market was oversold and the dominance in the export was around 40%, BTC was in reverse accumulation zone. Note that these zones are displayed in green areas and their origin always corresponded to the day of dominance. The bottom of dominance predicted the beginning of a reversal of the trend to bullish.
What does this mean at the moment? The sideway movement in which the price is currently located was also initially predicted by a local minimum of dominance. At the same time, BTC’s dominance is approaching to resistance 45% and we assume that the price of BTC could soon get out of this accumulative sideway structure into bullish trend.
Dominance would enter into such a scenario final growth phase the price would surpass maximum $ 46,000 and growth would be confirmed. And what about altcoins? As we know, the first days at the beginning bullish trend are in the hands of the main cryptocurrency. Altcoins thus BTC would follow with a time lag, and subsequent BTC dominance would begin to decline again.