A signifiant change in crypto market dominance approaches

Bitcoin Dominance is currently at 43%. That means 43% of the entire crypto market capitalisation belongs to Bitcoin.

On the above 4-day chart two bear flags are shown. The 2nd bear flag is a fascinating fractal of the first. Using the numbers on chart:

1) Dominance rejects the upper Chanel for the 2nd time.

2) Dominance prints lower highs whilst trying to regain the 21-week EMA (yellow line) and ultimately fails.

3) A double top is printed as dominance rejects the bear flag mean.

Now the question become: Is the Alt-token market about to experience a move not seen since early 2017? Or indeed March 2021?

It is increasingly probable. Those fractals are very difficult to refute.

In addition to the fractals… look closely at the RSI support. Recently that support was broken and confirms resistance. This was the final caveat to publishing this idea.

IF bear flag 2 confirms as points 1 through 3 suggest, there’ll be a huge increase in alt-token dominance. What is fascinating is the first and second bear flag both point to the same target, 75%. That is alt-tokens (TOTAL2) controlling 75% of the crypto market capitalisation. This has never happened before.

Recently I’ve been posting some large target ideas. This is how they are achieved, with a change in market dominance not seen before.

Excited? You should be.

Ww

Type: trade
Risk: Portfolio majority in alt-tokens
Timeframe: 2 to 4 months
Return: It will be something we’ve not seen before.

Comment:

Well this is interesting, BTC.D appears losing historical support. Will wait for one more 4-day candle to close before calling this trade 'active'. Make no mistake what will happen to your alt-token positions if this confirms.

Trade active:

Bitcoin dominance confirms bear flag breakdown on the 4-day chart. What does this mean? The alt-token market is about to take a significant chunk of market dominance.

Two misconceptions before comments begin:

1) Are you saying Bitcoin price action is going to crash. No. I'm saying Bitcoin dominance is going crash, those are not the same thing. Look left, when dominance crashed in March 2021, a new all time high was made 2-months later. Alt-tokens even more so.

2) Bitcoin will always control the majority of market dominance. No, it won't. That's the maximalists speaking. There's a reason we don't barter with gold anyone. There's even a possibility Jeff Bezos's Ethereum will flip Bitcoin in terms of dominance. Watch this space!

Comment:

Bitcoin dominance continues to bleed. 40.75% is critical support. If dominance falls to <40.5% and of course <40%, you're going to see some crazy moves in the alt-token market. Buckle up.

Comment:

Bitcoin dominance falls back to the critical 40% level. The King of the hill is showing incredible weakness.

Follow the red circles, look left... a break of this 40% level will result in 'not seen before' rally in the alt-token market.

Comment:

Think this is worth sharing in response to a comment below:

BTC.D + ETH.D (3-day chart below).

Is there about to be a massive collapse in BTC.D and ETH.D?

Look what is happening to BTC.D + ETH.D:

1) Consistently testing a support level. What do with know about this behaviour? The more often it tests it the more likely it is to break.

2) Lower highs. Point (1) is happening as lower highs are printing.

3) The trend. What is it? It’s lower highs lower lows. There is nothing bullish about this. Was bullish for a $2k Ethereum. I now notice everyone on the Youtube and in general is calling for much higher highs. After a 80% move! Madness.

The chart below reminds me of 2019 Bitcoin capitulation with a level consistently under test until it failed.

Comment:

BTC.D broke the 40% level before quickly recovering in the early hours of this morning. The Bitcoin bulls are struggling to hold 40%. A collapse all but seems inevitable. IF that happens the alt-token markets will be volatile, in a good way.

Comment:

Another 10-days have come to pass since sharing this chart a few posts back. Bitcoin dominance still hanging on to 40% by a thread. Remember Bitcoin dominance collapsing into the abyss does not mean price action will follow.

Comment:

The 40% dominance was briefly lost then recovered. This is the 4th or 5th time the 40% level is being tested. The more often it tests the most likely it is to break.

Comment:

BTC.D will free fall to 37% if 39% is given up, that's not happened since January 2018.

If 37% fails the alt-token market will see moves not seen since the first half of 2017.

Comment:

There goes 39%... you know if this keeps up there's a strong chance Ethereum dominance will flip Bitcoin in this up and coming run.

Comment:

The red circles. A back test of the flag support is around 44% dominance.

Comment:

Bitcoin dominance is rising quickly to strong resistance in the bearish rising wedge formation. The next couple of weeks will be interesting.

If resistance is broken (unlikely - stochastic RSI is overbought) - a broad market sell off seems likely.

If resistance is confirmed, the alt-token market will make considerable gains.

Trade active:

The breakdown occurred exactly on the blue vertical line drawn some weeks earlier, at the 70% area into the wedge. Who says TA does not work?

BTC.D will now go back down to test 40% for the umpteenth time. Nothing will prepare you for what will happen to the alt token market should that level break, as is forecast.

Comment:

Think the alt-token market is about to see some serious moves when BTC.D hits 47%. Looking left this resistance (red circles) saw massive upward moves in TOTAL2.

Comment:

Bitcoin dominance has confirmed past support as resistance from the bear flag (red circle). Very interesting times ahead!

Trade active:

Alt-coin market bull?? You absolutely must pay attention to this update. The blue circles and a big dose of ‘look left’. It is astonishing this chart has not seen any edits to the bear flags since first published.

The left blue circle marks the point when Bitcoin dominance lost 62%. That was March 2021. The alt-token market when bananas on confirmation. Yes, that was the point Ethereum zoomed from 1.5k to 5k.

Do you see what I see? Bitcoin dominance has just confirmed rejection from the 2nd bear flag with strong bearish divergence. Bitcoin dominance is about to lose the 47%. And we already know where it is going, 32%.

Now this is not bad news for Bitcoin, just like it was not bad news for Bitcoin price action in 2021. However what it means is the ‘other tokens’ will be far more bullish. It is also amusing to see so much bearish sentiment pouring over price action at the moment from the majority, just as it was in March 2021. In fact you go back to look at what folks were saying then you might think they were talking about today’s market.

Just as in March 2021 there were only around 20 tokens that outperformed everything else in the market. That is also true of today. Some have already been published by myself and other not.

Ww

4-day chart

Comment:

The symmetry in this chart is stunning. Red arrows. A 2nd bearish divergence following the fist.

Trade active:

Stochastic RSI drops below 20 during an overbought condition. This has not happened since July of last year and March 2021 before it.

Trade active:

On the 2-day chart BTC.D has confirmed a strong bearish divergence together with a high probability signal for correction. The last time this happened (June 2022) the alt-token market added $200b to its total.

2-day

Comment:

The 4 day chart remains valid. The forecast is update, however. BTC.d is expected to correct to 30%, whenever that is.

4 day BTC.d

Comment:

Have not changed anything about this chart since publishing the original. The only difference here the blue channel of support.

In the last update it was noted the support had failed. At this time btc.d is back testing support as resistance.

I'm reading a great number of ideas talking about btc.d returning to 70% minimum 90% probable. Is that was this chart is supporting?

Support and resistance, TA 101.



4-day

Comment:

Still, nothing is changed in the drawing of this chart. Added a few lines to show the failed RSI support. If you look closely you can see the bearish divergence following the failed support.

A strong alt-season move is about to print. Don't miss out!

If you're wondering which tokens to focus on, stay on my 2-day GRM list. Shared elsewhere.

Ww


4-day

Trade active:

The year long BTC-Dominance support has at this time failed. I know this is not what the Bitcoin bulls want to hear, however the chart is clear. Should the current 4-day candle print below support next Wednesday... then there is going to be a 25% collapse in dominance. This will lead to a massive inflow to the alt.token market, especially TOTAL3 but is unlikely to be positive for alt.tokens like ETH, LTC and some others. There is clear evidence for this.

Merry Christmas everyone!

4-day

Comment:

Bitcoin dominance confirms resistance from failed support.

What does this mean?
The alt-token market is now forecast to outperform until June / July. Although not all alt-token will run equally.

Comment:

Bitcoin dominance has throughly rejected support. The RSI resistance is forecast to remain intact until May / June.

You know what this means for the alt-token market.


4.day