Bitcoin (BTC) could make one more try for a new local high at $50,000, or it could stay in a range around the current price. The latter scenario could potentially be very positive for altcoins.
Bitcoin dominance up or down?
Source: Trading View
The bitcoin dominance chart is extremely important for gauging the likelihood of a move up or down for the altcoins. Currently, the chart looks weak. A lower high, followed by a lower low in dominance leaves the percentage of total money spread across the entire ecosystem at a critical juncture.
If bitcoin dominance should drop the support at 51%, the next area of support is at just under 49%. Below this, the next major support comes in at 44.4%, and then, should altcoins really rage against $BTC, 39% would be a bottom level of support.
While the lower support levels are probably unlikely to be found any time soon, a dominance drop to 49% could present the altcoins with room to increase their prices against bitcoin, at least for a while.
Upward trend for altcoins is still continuing
Source: Trading View
Looking at the trend on the Total3 chart (market cap of all altcoins, excluding $BTC and $ETH) it is still continuing upward. There were periods over the beginning of January when altcoins fell out of this trend, but they have always managed to get back above so far.
A breakout past the resistance at $498 billion could mean that many of the altcoins could fly. We are very close to this particular moment, and altcoin season could depend on this.
As the market awaits the next move, one thing is certain, this crypto bull market is just as exciting as the others. In order to profit from it, potential traders need to educate themselves on how markets work, and very importantly, apply proper risk management for when the market drops.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2024/01/bitcoin-btc-dominance-is-weak-altcoins-await