Cryptocurrency market is witnessing a correction for the last 48 hours, Bitcoin price had dropped from 10500$ to 9700$, and Major cap altcoins like XRP,ETH, LTC and EOS saw an average drop of over 15% in last 48 hours. Cryptocurrency market cap lost 30B$ value in past 48 hours, while Bitcoin dominance saw an increase of 5%.
Now the question is?
Is it a normal correction for altcoins, or Season is over? To find the answer, we will look into Bitcoin Dominance Technicals.
Bitcoin Dominance Analysis
Findings based on Daily Timeframe chart
- BTC.D broke down from a Major trendline last week, which hold the BTC.D above this support for 10 months.
- BTC.D bounced back from support at 62%, from which BTC.D had bounced in July’19, after that Altcoins started dropping to new lows.
- Bitcoin dominance retested Trendline neckline support yesterday, and currently trading below that.
Opinion
- Altcoins can recover quick, and push for another bullish wave only if Bitcoin dominance stays below 65-66% – which is also a trendline neckline support. In that case, Bitcoin dominance could drop below 58% in next few days.
- If BTC.D manages to stay above 66%, then there is a more than 50% chances that – altcoins can continue drop against bitcoin till Bitcoin Halving.
Must Read –
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Hitesh Malviya is the Founder of ItsBlockchain. He is one of the most early adopters of blockchain & cryptocurrency enthusiast in India. After being into space for a few years, he started IBC in 2016 to help other early adopters learn about the technology.
Before IBC, Hitesh has founded 4 companies in the cyber security & IT space.
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