A widely followed analyst believes that Bitcoin’s (BTC) relative share of the overall crypto market cap has entered a downtrend.
The analyst pseudonymously known as Rekt Capital tells his 558,000 followers on X that altcoins may soon start breaking out as the Bitcoin dominance (BTC.D) chart is suddenly flashing bearish.
[adinserter block="1"]BTC.D tracks how much of the crypto market cap belongs to Bitcoin. A bearish BTC.D chart indicates that altcoins are gaining value faster than Bitcoin.
“In the end, Bitcoin dominance rejected from the lower high at 66% (black). More importantly, this lower high rejection has caused Bitcoin dominance to lose its macro uptrend (light blue), therefore drastically undermining chances for a revisit of 71%. As a result, Bitcoin dominance is on the cusp of losing this macro uptrend to kickstart a new macro downtrend.
To confirm the breakdown from the macro uptrend, BTC.D will need to either turn the uptrend or 60% level (black horizontal) into new resistance. Of course, it isn’t necessary that BTC.D turns these levels into new resistance, doing so would simply confirm the breakdown from the macro uptrend to fully confirm the new macro downtrend.”
The analyst says that if BTC.D loses 57.68% as support, altcoins may have explosive moves to the upside.
“But since losing the macro uptrend, it is now likely that the upside will be limited for Bitcoin dominance. And going forward, it is likely that losing the green 57.68% level as support is what would kickstart a major altseason.”
The analyst also says that Bitcoin appears to be on the verge of confirming a continuance of a bullish trend, if BTC reclaims the level around $113,000 as support on the daily chart.
“Bitcoin is attempting a breakout. A daily close and/or retest of the ~$113,000 region (red) would ensure additional trend continuation to the upside.”
At time of writing, Bitcoin is trading at $114,467, up 3.7% in the last week, while BTC.D is hovering at 58.31%.
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Featured Image: Shutterstock/Panassak Charnprasert
