{"id":423479,"date":"2020-05-11T20:00:17","date_gmt":"2020-05-11T20:00:17","guid":{"rendered":"https:\/\/wncen.com\/?p=423479"},"modified":"2024-06-11T07:04:06","modified_gmt":"2024-06-11T07:04:06","slug":"bitcoin-dominance-exposes-altcoins-to-bounce-or-die-scenario","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/bitcoin-dominance-exposes-altcoins-to-bounce-or-die-scenario\/","title":{"rendered":"Bitcoin Dominance Exposes Altcoins To Bounce or Die Scenario"},"content":{"rendered":"
Over the last month, Bitcoin<\/a> dominance has grown by nearly 3%. The climb has largely been driven by the asset’s block reward halving set for less than 24 hours from now.<\/p>\n The latest move in BTC dominance has left altcoins on the ropes, and exposing them to a bounce or die scenario. The apex of a multi-year triangle is nearing a resolution, and which way it breaks will determine the future of the alternative crypto assets. Is this the asset’s make it or break it moment?<\/p>\n BTC dominance is a metric used to weigh the first-ever cryptocurrency against the rest of the market.<\/p>\n Increases in the market caps of altcoins such as Ethereum<\/a>, Ripple, or Chainlink lower Bitcoin’s dominance over the rest of the space.<\/p>\n Related Reading | This Altcoin’s Fractal Shows How Epic the Next Crypto Bull Market Can Be\u00a0<\/a><\/strong><\/em><\/p>\n Just like price charts of individual assets, BTC dominance ebbs and flows just like anything else. During altcoin seasons, BTC dominance takes a dive. However, when things get especially bullish for Bitcoin<\/a>, altcoins often suffer as a result.<\/p>\n Take last year’s bull run for example. Altcoins had performed strongly aside Bitcoin, until around May 2019 and then Bitcoin left them in its dust.<\/p>\n Alts crashed, and Bitcoin<\/a> set a local high. BTC dominance reached a high of 73% before reversing.<\/p>\n Bitcoin is once again performing, and its halving is tomorrow<\/a>. The bullish event could lead Bitcoin to break free from a separate long-term triangle on the BTCUSD pair. This would also cause a corresponding break of the triangle on BTC.D charts.<\/p>\n And with the most recent price action leaning heavily bullish towards Bitcoin, altcoins could see a major collapse.<\/p>\n <\/p>\n <\/p>\n In the above chart, the total altcoin market cap can be seen as a trading pair against BTC. The chart essentially acts as the inverse of a BTC.D chart.<\/p>\n A breakdown of the multi-year triangle could result in complete destruction to altcoins that are already down over 99% in many cases.<\/p>\n Related Reading | Bitcoin Dominance Climbs, Leaving Altcoins Vulnerable to New Leg Down\u00a0<\/a><\/strong><\/em><\/p>\n However, symmetrical triangles also can break up. With the prior trend being bullish for altcoins, continuation to the upside is very likely.<\/p>\n Clearly, given the circumstances, altcoins are at a bounce or die junction that will shape the future of the asset class.<\/p>\n <\/p>\n Bitcoin’s halving is tomorrow<\/a>, and the asset is expected to explode into its next bull market as a result. But it was the last halving that kickstarted the alt season that sent the assets to their all-time highs.<\/p>\n In the below BTC.D chart, each halving has been highlighted with a red dotted line.<\/p>\nBitcoin Dominance Forms Multi-Year Triangle, Price Action Reaches Apex<\/h2>\n
BTC Dominance: Will Altcoins Skyrocket Again, or Will They Be Annihilated<\/h2>\n