BTC dominance – a metric that weighs the entire Bitcoin market cap against other crypto assets – has been falling in recent weeks, giving many small-cap altcoins a chance in the limelight.
The short-lived altcoin season could come to an abrupt end, however, according to a highly reliable indicator.BTC Dominance To Grow, Putting Sudden End To Crypto Alt Season
Bitcoin is the first-ever cryptocurrency, and everything else across the market ranging sans stablecoins, from Ethereum to Dogecoin is considered an altcoin.
Oftentimes, when Bitcoin is pumping, altcoins will grow right alongside it in terms of USD value. On other occasions, altcoin capital has directly flowed into Bitcoin further fueling its parabolic rise.
When Bitcoin crashes, altcoins are usually obliviated. The prime environment for altcoins to shine tends to be when Bitcoin is trading sideways.
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And because each unique altcoin has its own price chart in terms of USD and BTC pairs, oftentimes crypto analysts look toward an aggregated metric such as BTC dominance to shed some light on what may happen between Bitcoin and altcoins.
TD Sequential Signals Bitcoin Overperformance Compared to Altcoins In Short Term
The TD Sequential indicator has presented a buy setup on BTC.D price charts, depicting Bitcoin‘s weight against the rest of the crypto market.
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It even signaled a sell set up just ahead of the market collapse that sent Bitcoin price tumbling back to lows around $4,000.
Altcoins have been suffering against Bitcoin for over two years, and are well overdue for a recovery. This recovery may need to wait a bit longer if this signal plays out on BTC.D charts and altcoins take an unexpected hit. Whatever glimmer of an alt season that has been underway, will be gone before it really got started.
