BTC dominance is rising again. Is it temporary?

in hive-103599 •  8 days ago  (edited)

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Source: TradingView

BTC(Bitcoin) dominance started collapsing 4 weeks ago, and it's rising again. So, I wonder whether it's temporary or not.

The above chart is weekly BTC dominance chart. I think the 3rd altseason officialy started 4 weeks ago, based on the BTC dominance data.

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Let's take a look at 2021. It was the 2nd altseason. BTC dominance started collapsing in the 1st week January. Then, it had consolidated for around 9 weeks(approximately, 2 months).

Then, it had plunged again for about 2 months.

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Let's take a look at 2017. It was the 1st altseason. BTC dominance started collapsing in the 1st week March. Then, it had consolidated for around 4 weeks(approximately, 1 month).

Then, it had plunged again for about 1 month.


Therefore, my assumptions are as follows.

1000027105.jpg

BTC dominance would likely consolidate for 4~8 weeks. If the consolidation period is 4 weeks, the altcoin market will be bullish again since next January.

Then, I assume next consolidation would likely occur next February.


Well, I'm not sure whether BTC dominance will drop below 40% this cycle. If some altcoins present innovative use cases, it would be possible. But, if the U.S. defines BTC as a reserve asset, BTC dominance would be difficult to fall below 40% this cycle.

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Even though BTC dominance consolidates until this month, I'll continuously maintain my position and climb up to the summit.

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