Bitcoin Dominance Worked Out for Alts (Sort Of)

From time to time I check on bitcoin dominance to check on the levels and see if it's near the top or bottom of a range.

A while back I said that my assumption was bitcoin dominance would need to rally a bit before we could see alts run again. That or dominance would have to break a key level and go for the all time low.

It didn't seem like the right environment for that.

Turns out we got a dump in everything but not evenly.

Dominance Rises to Resistance and Then Falls

You can see on the chart that dominance rose in May into June toward the 50% area resistance. This is the top of the range that has been in place for more than a year now.

Thus my theory is once we approached the resistance odds were we'd potentially see a rally in Alts pushing dominance back down to support.

So Did it Work?

Well, many alts got whacked worse than bitcoin on the sell off, but they also then recovered much more than bitcoin.

Easiest example is ETHEREUM. After touch below $900, a month later price had basically doubles and is currently floating around $1500.

That is still a positive gain of roughly 65% while bitcoin is floundering up a marginal amount following it's bounce high of 40% off the low.

As you can see it did not rally as much as ETHERUEM, which is just the example case. You can find many other alts fitting the bill.

Back to Support

So now the question is - with Bitcoin back near the 20K area support and dominance near the support something has got to give!

Will bitcoin break down and alts maintain? Will bitcoin rally off 20K and alts flounder?

These are just a couple of the potential scenarios that can play out.

Posted Using LeoFinance ^Beta