Bitcoin continued its anticipated downtrend over the weekend, leaving it hovering around recent lows following some poor bounces that did little to inject confidence into the market. despite taking most alt coins with it, one or two (most notably XRP and LINK) have shrugged off Bitcoin’s negativity amid a general trend reversal in Bitcoin/alt coin dominance.
— Paddy Stash (@paddystash) October 6, 2019
Bitcoin Running out of Steam
BTC has now almost completely retraced the $700 upward move it made on October 1, gradually falling back down from the local high of $8,500, illustrating that the desire was not there to push on further. This has left BTC clinging onto the lows set before that jump, $7,715, an area that has seen support twice in the past ten days. Breaking this double bottomed support would not be a surprise, and would not necessarily be a problem in itself, with the real proof of sentiment being in how it responds. With no clear fundamentals kicking the price on there is nothing to drive it upwards, and seeing as we are still technically blowing off steam following June’s parabolic rise to $14,000, all the indicators are that further downside is expected. Those seeking positives can look towards the MACD and the squeeze momentum indicators which show that we should soon be turning a corner on the recent downtrend, although of course this doesn’t indicate how low we will go.
Alt Coins Turning a Corner?
Another chart worth keeping an eye on is the Bitcoin dominance chart, which shows a clear pattern developing since the start of September:
Looking at the bigger picture is even more illuminating:
As we can see, Bitcoin dominance has been on a tear for six months, destroying every single alt in its path in that time. However, this move topped out at the start of September and has now begun to reverse in line with the lack of momentum as Bakkt failed to inspire confidence in the market. This has got many within the crypto community excited, presenting the best opportunity yet for the much-vaunted alt season that has been proclaimed on an almost weekly basis since August. Bitcoin dominance has always held the key to any alt season, and with the balance slowly reversing, and most alts tapped out to their absolute limits, it might be the best opportunity since May 2018 to gamble on some alts and make a killing.
TOTAL/BTC (MAJORS) look ready to pop in the next 20 days.
November will be gucci 🥳 pic.twitter.com/tIOM6HJfYp
— Mac ❄️🐺 (@MacnBTC) October 2, 2019