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In this episode of NewsBTC’s daily technical analysis videos, we analyze Bitcoin dominance (BTC.D) and how the best cryptocurrency could perform against altcoins in the short term.
Watch the video below:
VIDEO: Bitcoin Dominance vs. Altcoins (BTC.D): October 20, 2022
In addition to the video highlights listed below the video, we also analyze BTC.D using the Ichimoku, Average Directional Index, LMACD, and other technical tools.
Bitcoin Outperforms Altcoins During Sideways Phase
On daily time frames, BTC.D takes a short break but is still mostly bullish according to price action and technical indicators. Dominance is above the Tenkan-sen and Kijun-sen on the Ichimoku while bullish on the LMACD. The Average Directional Index bottom shows trend strength weakening on daily timeframes and bulls have the upper hand
Bitcoin is has been outperforming altcoins | Source: ETHUSD on TradingView.com
Related reading: Bitcoin Price Action Falls Flat | BTCUSD Analysis October 18, 2022
Why Altcoin Season May Be Over For Some Time?
On weekly time frames using the same tools, we can see that dominance has only just turned bullish against altcoins, and the Average Directional Index suggests that this trend could strengthen soon. On the Ichimokudominance is over the Tenkan-sen, but not the Kijun-sen, making it the next logical target.
Moving to monthly time frames, Bitcoin dominance is also bullish against alts on the LMACD, and the ADX shows that the altcoin season could cool off for some time. The Ichimoku isn’t very telling, but like weekly timeframes, the Kijun-sen above could be a possible next target.
Can Alts maintain 50% of crypto dominance?
Additional Trendline TA Shows BTC Dominance May Have Re-Tested One-Year-Old Neckline reverse head and shoulders pattern, including the early peak of the 2018 alt season that came shortly after Bitcoin peaked at $20,000 in December 2017. Shockingly, Bitcoin is trading below that level about five years later.
If Bitcoin dominance reverses hard against altcoins, the line in the sand to watch out for is about 52% dominance. Above, Bitcoin’s first-ever monthly buy signal against altcoins would be triggered.