Over the past month, Bitcoin's dominance has increased by almost 3%. The escalation is largely due to bulk asset rewards set in less than 24 hours from now.
The latest BTC domination movement left altcoins in the ropes and exposed them to a rebound or death scenario. The top of a multi-year triangle is approaching a resolution, and how it breaks will determine the future of alternative crypto assets. Does this asset do or break it?
Bitcoin Dominance forms a multi-year triangle, price action reaches Apex
BTC dominance is a metric used to weigh the first cryptocurrency against the rest of the market.
Rising market limits for altcoins like Ethereum, Ripple or Chainlink decrease Bitcoin's dominance over the rest of the space.
Related Downloads:
Related Reading | This Altcoin fractal shows how epic the next bull market can be
Like the graphs of individual asset prices, the dominance of BTC decreases and flows like anything else. During the altcoin seasons, the dominance of BTC sinks. However, when things get particularly optimistic for Bitcoin, alternative currencies often suffer.
Take the example of last year's bullfight. Altcoins had performed well outside Bitcoin, until around May 2019, and then Bitcoin left them in their dust.
Alts crashed and Bitcoin hit a local peak. BTC dominance peaked at 73% before reversing.
Bitcoin works again and halving it tomorrow. The bullish event could lead Bitcoin to break free from a separate long-term triangle on the BTCUSD pair. It would also cause a corresponding break in the triangle on the BTC.D charts.
And with the latest sharp bullish price action to Bitcoin, altcoins could see a major collapse.
BTC domain: Altcoins will skyrocket again, or they will be erased
In the graph above, the total market capitalization of altcoin can be seen as a trading pair against the BTC. The chart basically acts like the inverse of a BTC.D chart.
A break in the multi-annual triangle could lead to the complete destruction of alternative currencies which have already fallen by more than 99% in many cases.
Related Reading | Bitcoin dominance increasing, leaving Altcoins vulnerable to a new stage
However, symmetrical triangles can also be broken. With the previous upward trend for alternative currencies, it should most likely continue to increase.
Obviously, under the circumstances, the altcoins are in a rebound union or given that they will shape the future of the asset class.
Bitcoin's halving is tomorrow, and as a result, the asset is set to explode in its next bull market. But it was the last half that started the alternative season that sent the active to their all-time highs.
In the next BTC.D box, each half has been highlighted by a dotted red line.
The halving of 2016 is what sent altcoins into the stratosphere, dropping BTC.D from 98% to 35% when the 2017 crypto bubble peaked.
Will the cycle start again with a halving, or will the Bitcoin bull run crco altcoins again?