The crypto market has endured a turbulent period in recent weeks, as the total market cap has crashed by over 18% in the last month, with Bitcoin leading the decline. Amid this heavy correction, data on Bitcoin Dominance counters circulating narratives of the market top being in.
Popular market analyst with X username Colin Talks Crypto has shared some insights correlating the Bitcoin Dominance (BTC.D) with spotting altcoin and Bitcoin bull run peaks. Notably, Collin Talks Crypto responded to an analysis by Matthew Hyland, who highlighted that Bitcoin Dominance’s weekly chart is exhibiting a bearish trend, characterized by a negative RSI setup and the formation of a bear flag pattern.
Hyland explained that, while these indicators appear bearish for Bitcoin Dominance, they could actually signal a positive outcome for the broader market, as a potential capitulation in BTC.D might pave the way for widespread gains across all cryptocurrencies.
Collin Talks Crypto expanded on this theory, stating that the final phase of the market bull run is usually characterized by a rise in Bitcoin’s price amid a simultaneous fall in BTC.D, i.e., an altseason, as previously seen in 2017 and 2021.
In particular, the analyst stated that a fall in BTC.D. to below 49% has always confirmed the Bitcoin top for the cycle. He explains that following this event, investors should stay alert for altcoin profits that should follow. With the present Bitcoin Dominance around 61%, Bitcoin’s price still holds more room for growth before potentially recording a market peak.
At the time of writing, Bitcoin trades at $102,283 after a slight price loss of 0.07% in the last day. Meanwhile, the daily trading volume is up by 25.29% and valued at $85.58 billion. Aside from the predicted crash in Bitcoin Dominance, Collin Talks Crypto has also noted other signals that suggest Bitcoin is yet to reach a market top.
These include that the Bitcoin market never produced an euphoric or overheated sentiment when it established its present all-time high around $126,000, a pattern that typically accompanies cycle peaks. Meanwhile, the expected end of the US Federal Reserve’s quantitative tightening (QT) by December 1st, as announced by Jerome Powell, could further act as a bullish catalyst.
Collin Talks Crypto also highlighted that this period may coincide with the anticipated US government reopening between mid-November and early December, adding to the potential convergence of supportive macro factors that could reignite the final lap of the bull run.
[#item_full_content]NewsBTCRead MoreThe company seemed to have skipped it's weekly bitcoin purchase announcement for the first time…
Historically, spikes in Bitfinex BTC/USD longs have acted as a contrary indicator.Read MoreCoinDesk: Bitcoin, Ethereum,…
Joao Wedson, popular market analyst and founder of analytics platform Alphractal, has shared a cautionary…
Institutional money has been pouring into Bitcoin at a scale that would have seemed far-fetched…
Santiment data shows that bearish sentiment language is flooding social media at peak levels. However,…
Bitcoin continues to move within the $66,000 range following the corrective wave that dominated the…