Recent crypto market dynamics in the past four days have seen a bullish move trend into many cryptocurrencies, with the price of Bitcoin leading the charge. Interestingly, this has led to a projection of future gains in many altcoins, and technicians suggest that the altcoin season may be entering.
Crypto analyst Kevin (@Kev_Capital_TA) recently attract attention important development of daily death cross in The dominance of Bitcoin. This rare event could signal a movement in cryptocurrency investments in the coming months with implications Bitcoin and the altcoin market.
Bitcoin Dominance Chart Forms Daily Death Cross
According to technical analysis of the Bitcoin dominance chart, the major digital currency is about to form a death cross in the daily candlestick chart. A death cross is a technical indicator where a short-term moving average crosses the long-term moving average, often indicating a bearish trend. On the other hand, the Bitcoin dominance chart monitors the percentage of the total cryptocurrency market cap represented by Bitcoin, and a decline often indicates the strength of an increase in altcoins.
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In this situation, the daily death cross on the Bitcoin dominance chart is forming at a macro high for the first time in four years, according to Kevin's analysis. Interestingly, technical analysis shows that Bitcoin's dominance has faced gold's macro rejection twice in the past three months, which adds more weight to the change in dynamics. ' market if a death cross were to finally become apparent.
What does this mean for currency?
Kevin's analysis reveals a historical precedent where a high macro had a daily death cross prior to the start of alt season. Four years ago, in 2021, a similar event occurred on Bitcoin's dominance chart, before the market trend shifted away from Bitcoin to altcoins. During that time, Bitcoin's dominance was around 63% of the total market cap. However, in the ensuing altcoin season, Bitcoin's dominance dropped below 40% by April 2021.
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The current situation suggests that a comparable situation may be opening up. If the death cross leads to a steady decline in Bitcoin's dominance, it could pave the way for an altcoin market rally.
Despite this, Bitcoin still dominates inflows. At the time of writing, Bitcoin was trading at $99,750, with a market dominance of 55.8%. But recently price performance of cryptocurrencies like XRPDogecoin, and Solana seems to threaten this leadership. On the other hand, Ethereum, the king of altcoins, it is yet to be revealed rally similar to this cycle.
Adding to this view, the crypto analyst TechDev pointed out first of a season. His analysis focuses on the six-month candlestick chart of Bitcoin's dominance chart, where he points out that the current candlestick is the one where altcoins are going to move. According to TechDev, the current candle corresponds to historical periods when altcoins rallied, citing parallels in 2017 and 2021. He explained that Bitcoin's dominance in these cycles declined in a new candle six months after it went over the high of the previous cycle.
Featured image created by Dall.E, chart from Tradingview.com
