Bitcoin Analysis: Is It Wise To Be In Altcoins Right Now?

With the price of bitcoin fluctuating at the same level for a few days now, it’s time to look at factors other than price. In this review, we are going to look at Bitcoin’s dominance. This factor can tell us what percentage of the market is bitcoin. From this we can also see the performance of altcoins.

first the course

To begin with, let’s take a look at the price to get an idea of ​​where Bitcoin is at. In the image below, we see the crypto king’s weekly chart, where each candlestick represents 7 days. We immediately see three levels that were very important in price action.

We see that Bitcoin has now lost the middle zone as support, which usually points to further decline. However, this too can be different, as described in the previous review. December 1 could still make a big difference and spark bullish momentum for Bitcoin, as you can read in this review.

the domain

Now that we know the price isn’t necessarily in great shape, let’s take a look at bitcoin’s dominance: the percentage of the market that consists of bitcoin. The rest of the percentage consists of altcoins and stablecoins.

Dominance has fluctuated between two key levels since 2021. Since then, Bitcoin represents a minimum of 39% of the market (lower blue zone) and a maximum of 49% (upper blue zone). So far, Bitcoin price has reversed every time these levels have been reached, so it is plausible to assume that it will happen again. Combined with the price of Bitcoin, this can mean 4 different things, described below.

What can be read for dominance?

These scenarios are described in the four headings below.

Dominance up, rate up

As dominance grows and so does the price, the rest of the market (alt and stablecoins) will not move much. At these times it is good to stay with Bitcoin because the price is doing very well.

Domain up, price down

If dominance grows and bitcoin falls, it means a lot of money is being taken out of the market. If Bitcoin’s market share decreases and with it the price, this is the only logical conclusion. In such cases, it is better to stay away from it, especially if you like altcoins. This seems like the most likely scenario at this point, but it’s not a guarantee.

Dominance down, rate up

With declining dominance and rising bitcoin prices, that’s a different story. In this case, it means that Bitcoin is doing less well and there are more people in alt or stablecoins. Altcoins are a good investment compared to Bitcoin in these times, unless there is a lot of money in stablecoins.

Dominance down, price down

This brings us to the last scenario: a declining domain and a falling bitcoin price. In this exceptional case, an exact estimate of the market is not possible. Bitcoin can fall if not much is happening in the market.

It is important to mention that the percentage of the market that consists of stablecoins also influences this. In this case, when there are many stablecoins and few altcoins, many people want to be left out, both bitcoiners and altcoin owners. If the percentage contains few stablecoins, then altcoins are much better than bitcoin (a very exceptional scenario). At the moment, Bitcoin looks very uncertain. So keep an eye on the prices.

Source: Btc Direct

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