Altcoins Rally as Bitcoin Dominance Drops Lower, Has Altseason Begun?
In a rare scene today all of the altcoins are in the green and many are outperforming Bitcoin as dominance drops lower. The market share chart for the king of crypto has been showing signs of a pullback which of course is good news for the altcoins.
Bitcoin Reclaims $8k But Dominance Below 69%
Following a Monday dip into the high $7,000 level BTC bounced back yesterday to reclaim $8k and top out just over $8,300. Yet again resistance has proved to be too strong here and Bitcoin fell back below $8,200 where it currently trades within its two week range bound channel.
According to Tradingview.com BTC dominance has now dropped below 69% to a two month low. It is clear from the following chart that a pullback period has begun and Bitcoin’s market share is likely to shrink further. The next support level in terms of dominance is 66%.
BTC dominance – tradingview.com
The failure of BTC bulls to break resistance has been good news for the altcoins, many of which are rallying well during Asian trading today.
Ethereum is currently out-performing its big brother with a 4% pump over the past 24 hours to top $180. ETH is still pretty weak in the grand scheme of things but recovery has to start somewhere and its market capitalization is almost back to $20 billion.
Chart guru Peter Brandt observed the ETH/BTC pair and how it is about to break out for Ethereum.
Bottoming construction in $ETHBTC $ETH pic.twitter.com/zbi0slEQzR
— Peter Brandt (@PeterLBrandt) October 7, 2019
Ethereum is unlikely to truly rally until it can retake the psychological $200 level without being dragged up by its big brother. The last time Bitcoin had dropped to $8k, in August 2018, ETH was priced at $400 so it still has a long way to go.
Ripple’s XRP has had a second strong day adding a further 3% to reach $0.275 but it too is way down from last year’s prices and has been one of the worst performing altcoins this year.
Bitcoin Cash has retaken fourth spot from Tether with a 3% move to reach $230 again but like those above it, BCH is still pretty weak still.
A 4% move for Litecoin wasn’t enough for it to retake $60 and it has been very lackluster since the halving two months ago which halved its price in addition to the perceived supply.
EOS is the top ten’s top performer with 5% on the day to reach $3.20 but it is still down over 60% from its 2019 high. Binance Coin made a similar 4% move to get to $16 but the exchange based token is also down 60% from this year’s peak.
Total market cap has increased by $8 billion since the weekend and it has been largely due to altcoins having a good start to the week. It could be the beginning of something bigger or just another minor blip in the ebb and flow of crypto markets.
Image from Shutterstock
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Martin Young, Khareem Sudlow
