A little over one month ago I posted about a wedge or possible bull flag whereby ALTs were approaching a potential "bounce or break moment" after which the trend broke downward both for the dominance wedge in addition to the total market cap for ALTs.
However, during the latest bitcoin drops, I have noticed a trend whereby the "discount prices" for ALTs were not too far off from the "discount prices" one month ago when the price of bitcoin fell to around $25-26K.
Upon revisiting the trend, it appears that altcoins have continued to maintain their own prices despite the further drops in both bitcoin and ethereum. This is additionally rather surprising since alts generally follow ethereum more than bitcoin.
Now that the price has started to near $17K, I think the question now is: Will the dominance continue for alts? and in addition: Will BTC bounce reverse upward? and if so, what effect will that have on the "alt dominance trend"?
As anyone who has followed me knows, I have mentioned this "near $17K from the 78.6% Fibonacci retracement from 2020" possibility for some time now. I should note however, that further drops between $12-14K are still possible due to other retracement starting points, and when one looks at further retracement values from the recent lows last May (not drawn to avoid too much clutter on the chart), both this current value near $17K as well as lower prices look like potential possibilities.
I think only time will tell, but it does indeed look like the drops downward might soon be coming to an end. However, with the trends for stocks and the fed rate potentially continuing, and a potential recession around the corner (for which BTC has not really faced a long-term recession similar to that in 2008), there is also a very possible outcome of "untreated territory" around the corner and potential depressing drops ahead.
Either way, it looks like the current times are a very interesting crossroads, particularly for altcoins that I see continuous chatter about "alts suffering due to bitcoin drops" despite a potential to break that trend.
But please let me know what you think in the comments and "like" if you find this idea interesting. And as always, this is solely my opinion and not in any way meant as financial advice.
However, during the latest bitcoin drops, I have noticed a trend whereby the "discount prices" for ALTs were not too far off from the "discount prices" one month ago when the price of bitcoin fell to around $25-26K.
Upon revisiting the trend, it appears that altcoins have continued to maintain their own prices despite the further drops in both bitcoin and ethereum. This is additionally rather surprising since alts generally follow ethereum more than bitcoin.
Now that the price has started to near $17K, I think the question now is: Will the dominance continue for alts? and in addition: Will BTC bounce reverse upward? and if so, what effect will that have on the "alt dominance trend"?
As anyone who has followed me knows, I have mentioned this "near $17K from the 78.6% Fibonacci retracement from 2020" possibility for some time now. I should note however, that further drops between $12-14K are still possible due to other retracement starting points, and when one looks at further retracement values from the recent lows last May (not drawn to avoid too much clutter on the chart), both this current value near $17K as well as lower prices look like potential possibilities.
I think only time will tell, but it does indeed look like the drops downward might soon be coming to an end. However, with the trends for stocks and the fed rate potentially continuing, and a potential recession around the corner (for which BTC has not really faced a long-term recession similar to that in 2008), there is also a very possible outcome of "untreated territory" around the corner and potential depressing drops ahead.
Either way, it looks like the current times are a very interesting crossroads, particularly for altcoins that I see continuous chatter about "alts suffering due to bitcoin drops" despite a potential to break that trend.
But please let me know what you think in the comments and "like" if you find this idea interesting. And as always, this is solely my opinion and not in any way meant as financial advice.