3 Crypto Charts That Prove Bitcoin Is About to Bleed Market Share
By CCN: “Alt season” is one of the most profitable phases of the cryptocurrency market cycle. It is a period when all altcoins – from large-cap to small-cap – go through exponential growth, often at the expense of bitcoin.
We experienced this phenomenon early this year, until bitcoin’s parabolic rise over the last few weeks shattered many altcoins to the point of capitulation. With many large-cap coins suffering tremendous losses, it is easy to assume that altcoins are bearish. However, nothing could be further from the truth.
A closer analysis of the altcoin market cap and the Bitcoin Dominance Index reveals that altcoin season remains in full swing.
Bitcoin Dominance Index Flashes Long-Term Bearish Signals
Recent price boom notwithstanding, Bitcoin Dominance remains bearish. | Source: TradingView / CoinSignals
In a nutshell, the Bitcoin Dominance Index represents the market share of bitcoin in comparison to the total market capitalization of all cryptocurrencies.
Many traders looking to grow their BTC stockpile rely on the dominance index to analyze how altcoins will perform against the king of cryptocurrencies. If the index is in an uptrend, it means that other coins are likely to perform poorly against bitcoin – and vice-versa.
A look at the weekly chart above reveals that the index is still bearish from a macro perspective. It appears to respect the long diagonal resistance at 60 percent. Take note: this diagonal trendline has been in existence since February 2014. The trendline previously acted as support, but the index has struggled to recover past that mark since plunging below it in April 2017.
