BTC Dominance Is Square... Alts Ready To Rip?One of the most faithful reversal signals in charting anything whether it be financial instruments or anything else is the meausre of momentum. As momentum drys up the trend curves until flat where there is either a renewal of what is driving the trend as it consolidates and ranges or it reverses.
This is weekly chart of the market cap of bitcoin versus the rest of the crytpo market. When a larger percentage of the overal crypto market cap is going to btc the trend rises, hence the word "dominance". With that said like all industries, participants tend to stick around and simply rotate capital from one area to another. When this occurs we see a flattening of the momentum in bitcoin dominance while the overal crypto market cap is still increasing. This is a clear indication that as more liquidty comes into the crypto market more and more is going to other "ALT" assets vs BTC.
We may or may not see a major alt season but if we are going to the time is approaching.
Current Trading Plan:
Continue to accumulate other cypto assets in a DCA fashion. Dominance has NOT broken to the down side yet. When it does start to brake down increase buys on any dip far more aggressively focusing on the increase of the entire market cap of crypto while BTC dominace trends down. A flattening in the overal crypto market cap and rise in BTC dominance will occur as the alt season IF we get one winds down.
Trade Well....
Your Friend,
Degen
