Bitcoin has been breaking all resistances and its dominance continues scaling up. After BTC takes such a massive rally, altcoins generally follow a similar price action once the dominance of BTC starts dropping.
When will the next altcoin price season begin? The answer is: SOON! Let us take a look at the previous few years to understand this further.
This is the BTC dominance chart of weekly candles from 2014 to 2017.
This is the BTC dominance chart of weekly candles from 2014 to 2017.
Historically, we have seen that BTC dominance starts declining from November and makes lower lows in subsequent weeks till January-February. This coincides with an increase in the price of all major altcoins. The profits made by investors from BTC longs are used to long many major altcoins, and we see that alts make much higher relative gains than BTC.
We have already seen a massive increase in Bitcoin since the past three weeks. It is just a matter of time till we start seeing BTC dominance making lower lows and the beginning of the next altcoin price season.
Once BTC.D drops from the resistance of 66 or 71, we should start seeing alts rising. Best case scenario for alts would be for BTC.D to fall below 54.
Images courtesy of TradingView.
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