Is Altcoin Season on the Horizon? Looking at BTC Dominance
Hey crypto traders, if you don't know about the Bitcoin dominance chart and why it matters for all you traders out there, listen up! So, picture this: the BTC.D chart on the daily timeframe is throwing some serious signals at us. It's like the crypto market's version of a head and shoulders pattern, and it's currently hanging out just above the 50% mark. Today, we are looking at BTC dominance chart, so let's get to it!
The Head and Shoulders- BTC.D's Drama Unfolding
Now, you might wonder, what's the big deal with this head and shoulders thing? Well, my friends, it's a potential game-changer. If this pattern plays out, we could witness a shift in Bitcoin's grip on the entire crypto market, at least for a time. Bitcoin's price action could be taking a breather, which will let the altcoins have their run in the sun.
Head and shoulders patterns are a bearish reversal pattern, and when seen on a time frame like the daily, it's probably pretty serious.
The Altcoin Uprising: Where's the Money Moving?
When the markets chill on Bitcoin, money tends to start exploring other corners of the crypto universe. First stop? The bigger altcoins like Ethereum, Binance Coin, Cardano, and Solana – these bigger coins often get a major slice of the action. Traders, pay attention! This could be your golden ticket to ride the altcoin wave. After the bigger cap coins, the money starts to flow down the list to the smaller caps, then eventually finding it's way back to good ole BTC.
Preparing for Altcoin Season
Now, don't panic. I am not saying Bitcoin is bowing out permanently. It's more like a breather, like an old man going to take a nap, which honestly sounds pretty good, haha. So, what's a trader to do during this potential Bitcoin siesta? Well, my friends, it's time to diversify your trading stack and look into those other cryptos, explore new possibilities, and maybe catch some gains on the way.
Don't Date Them, Just Trade Them
There are many out there that are just Bitcoin only kind of people, we call them maxis. Well they need to expect a bit of stagnation for BTC. If this is you, this is your chance to explore what else is out there and make some money along the way. The crypto market is a vast ocean, and there's more than one fish swimming around.
So, buckle up, be cool like this Dude, and ride the waves of change in the crypto world. Even if you are one of those Bitcoin maxis, sometimes you have to look at what else is on the menu! A term I heard once that stuck with me, 'don't date them, just trade them'! That means if Bitcoin is the only coin you hold, then hold it, but don't count out the gains you can make trading other coins, just turn those gains into more Bitcoin!
This was originally posted as an idea on my TradingView profile! Go follow me there for more charts and while you are there, add the Logical Trading Indicator V.1 to your charts for free and start trading logically!
You can also find it posted on my cryptocurrency research site, Coin Logic where we are looking logically at crypto assets. Get updated market data, charts, news, crypto education, and more!
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Many of my cryptocurrency related articles as well as trading articles can also be found on my crypto research site, Coin Logic.
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Posted Using InLeo Alpha
Great analysis! I especially liked that 'old man taking a nap' -reference. 🙂
Secretly wish this would play out... 👌
I'm just looking for the opportunities. The BTC.D is definitely something that needs to be watched in this space.
Thanks for the feedback!
I am just not sure whether to believe my own eyes or not.
All of this hinges on whether we have a working financial institution. And a dollar.
Both are on life-support.
But you know me, i believe the train crash has already happened, then i clear my eyes and the train is still moving down the tracks.
We are really close to the "this time it is different"
I wonder if stores will start accepting crypt before or after they can't use CCs?
So, if this is similar to last time, it looks like it is alt season.
This kind of thing happens every cycle, not sure why everyone thought the ETF news was going to change anything right off the bat. People were expecting some tidal wave of money that hasn't come yet. It's going to take some time for things to progress.
But as far as everything going down the crapper, I am with you and is why I am doing everything in my power to not make dollar based reportable income. Hell my store, the Hivelist.store accepts nothing but crypto, but nobody seems to want to actually spend it, that's the problem.
The hodl ideology completely screwed up the whole P2P ethos, and not just with BTC. People don't even want to spend HBD, which is supposed to be the actual currency of this chain. That's all thanks to the 20% APR, which in my mind needs to drop because it's unsustainable because we can't keep the price of Hive up.
Yeah, getting the little hodlers to give up their crypto is like pulling teeth.
I would so much like to go crypto and never go back.
… but i am afraid that won't happen until CCs are broken.
or maybe when bitcoin gets to $100k. Then people will start thinking this is high enough that i can never spend it all.