Bitcoin is breaking above $51k but that is good news and bad news.
It's good news if you are holding a bunch of bitcoin and not much else, but it's bad news if you hold a bunch of altcoins and not much bitcoin.
Well, it's not technically bad news yet, but it very well could be.
The bitcoin dominance index looks like it's ready to see a nice little pop in the coming days/weeks.
When it has this pop, altcoins will likely suffer.
Here's what I am seeing on the chart:
If we get a pop to the previous resistance area, it probably means that happened because bitcoin was hulk-like while altcoins were not so much.
The good news?
While this may sound more like bad news than good news I think this bounce in bitcoin dominance will be short lived.
If you look at how bitcoin has performed on these bounces, the dominance index tends to bounce like I am suggesting and then head lower to make a lower low.
If that is indeed the case, perhaps we see something like bitcoin surging to $65k in the near term only to see a rather large correction, say 30%? and then from there altcoins party like its 2017!
Which for most of is probably exactly what we would love to see.
Here's to bitcoin doing what it's supposed to do and making us all rich!
Posted Using LeoFinance Beta