Bitcoin’s dominance rises back to 64.1% as the bears have started to return to crypto markets. It logged a swing low of around 61.9% on 10th February, as Ethereum, Tezos, Link and other altcoins recorded hefty gains, even w.r.t. BTC.
As reported earlier on CoinGape, due to the higher systematic risk of altcoins w.r.t. Bitcoin, altcoin investors gain/lose more than BTC during trending markets. Technically, the levels for support and resistance for entire market capitalization of altcoins are starting to look weak.
Chart analyst, alias Immortal Technique tweeted,
$BTC Dominance Looks good so far but reclaim this trendline would be bad for alts.. Let’s see.
Currently, the dominance is below the 50-period weekly EMA, which is positive for altcoins. However, if it reclaims dominance back above the trend-line (>70% in the near future), the altcoins could face see another sell-off to Bitcoins.
Leading on-chain crypto analyst and investor, Murad Mahmudov shared two charts on Twitter also projecting dreadful forth-comings in altcoins.
On the long-term charts, the total market capitalization of altcoins (crypto Mcap excluding Bitcoin) got rejected at at the resistance, now looking down at reversal.
In case of further downtrend, it will look for support at the mid and bottom of the range.
In the short term (4-hour) as well, a descending triangle formation along with breakdown of bullish trend-lines brings bearish tidings. The support and break-down level of the triangle is around $95.7 billion.
At press time, the total market market capitalization of altcoins is $96.9 billion.
Currently, the price of Bitcoin is holding above support around $9200-$9500. However, in case of continuation of the bearish trends Bitcoin, crypto markets threaten to elevate the risk in altcoins.
Do you think alt-season will continue or bears are upon the crypto markets again? Please share your views with us.
