We’ve all heard it … What goes up must come down, or so the saying goes. Bitcoin’s impressive ride over the past two months has seen it over double in price. Much of those gains have been at the expense of the altcoins, a lot of which have been a bit ho hum lately. That could all be about to change as we ready for altseason. Although it’s only a few percent difference from the 62% a few days back, that can be all it takes to push trade back into Alts.
Bitcoin Dominance Dropping
One in particular strong indicator that altcoins are about to make a rejuvenation is the fall in Bitcoin market dominance. At present it has fallen back to 55.3 percent, its lowest level since the start of the month. BTC dominance is still up compared to earlier this year still, the gradual decline could be a sign of altcoin resurgence.
Way back before there was a huge selection of stablecoins traders would convert from BTC to alts and vice versa, the two were inversely correlated. This may be starting to happen again, particularly if confidence in Tether has plunged due to recent developments. Trader Josh Rager has also noticed the decline but maintains that it will not be altseason until dominance drops below 50 percent;
“% of $BTC dominance continues to slowly move down over the past 3 days. This is good for alts. I’m in $EOS which continues to make higher highs in USD and BTC. Nowhere near alt season yet (needs to break below 50% dominance) but good for trade setups,”
$BTC Dominance and $ALTs
% of $BTC dominance continues to slowly move down over the past 3 days
This is good for alts
I’m in $EOS which continues to make higher highs in USD and BTC
No where near alt season yet (needs to break below 50% dominance) but good for trade setups pic.twitter.com/8ul48aVV4q
— Josh Rager (@Josh_Rager) May 29, 2019
The analysis that followed illustrated that this could possibly happen as early as next month, in particular if Bitcoin backs away sharply as expected. Rager has also recently tweeted about a conceivable 30 percent correction for BTC, which he documents has taken place eight times during the last uptrend. If this happens soon it could possibly dump Bitcoin right back to $6,000 which is also where major support lies.
Altcoins Starting to Pump
This would certainly be very good for altcoins, a number of which are already starting to blast off. EOS has been touched on above which would not be a bad choice currently considering there is a significant event and well hyped mystery announcement approaching at the weekend. The B1 event in Washington on June 1 is very likely to induce more fomo for the Ethereum rivaling token which has already pumped 70 percent ever since the beginning of May.
EOS is still 60 percent below its all-time high so a sub $10 price would not be regarded as a bad entry. EOS has yearnings to beat Ethereum and if that reality ever plays out the tokens may never be this low again. Keep in mind, ETH was valued at below $10 in January 2017.
The other altcoin on a flyer today is Bitcoin SV which has doubled in price overnight. This, it turns out, has been a controlled pump by scammers posting fake news claiming that Craig Wright had sent Bitcoin from the so-called Satoshi wallets to verify his identity.
Whichever way you care to look at it, altcoins are waking up and as soon as Bitcoin takes a genuine breather some of them are quite likely to surge much higher than what they are today.
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