Since their inception, the majority of cryptocurrencies have significantly increased in price. However, Bitcoin has always had the highest market capitalization.
Additionally, the asset’s market dominance has been above 50% throughout the majority of its price history, meaning that its market cap has been higher than all other cryptocurrencies combined.
The lowest ever dominance percentage was reached in January 2018, with a value of 35%. Bitcoin’s market cap dominance is currently at 69%. According to our analysis, it is quickly approaching its top, and we could soon see a decrease, which would coincide with the beginning of “altseason”.
Crypto trader @Beastlyorion outlined a fractal and stated that the Bitcoin dominance rate is going to decrease.
The fractal indicates a very rapid decrease, which would likely mean that “altseason” has finally begun.
Will this transpire? Let’s analyze.
The fractal in question comes from September 2016. To be more clear, the trader projected that the movement after June 2019 will be the same as that after September 2016.
Doing that, we get a start date of November 9 for the rapid Bitcoin dominance decrease or the beginning of “altseason.”
Looking at the moving averages (MA), the 2016 movement began with the price trading below both the 50- and 100-week MAs. The price moved above them halfway through the highlighted period.
On the contrary, in the 2019 movement, not only was the price above them throughout the entire period, but a bullish cross had also transpired, which never did throughout the entire 2016 movement.
The RSI gives slightly more recognizable similarities.
During both periods the RSI hit oversold. However, the RSI has been oversold throughout the entire 2019 movement, while it only did so for one week in 2016.
However, in the 2019 movement, there has been some bearish divergence developing, indicating a possible decrease.
Therefore, even if the fractal is not followed in its entirety, the Bitcoin dominance rate is likely to decrease.
If however the fractal is followed, it will decrease until February 2020.
For more on the different altcoins, BeInCrypto recently reported on the fact that many of them had a positive 2019.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
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