Bitcoin’s share of total market cap just broke key support. This is also reflected in the price increase of many Altcoins in the past week.
Breaking 43.9% support, new low is likely. This possibility is predicted based solely on technical analysis. But we’ll also consider the cap volatility scenario if this happens.
BTC.D’s support breaking is due to the bullish wave of Altcoins (Altcoin Season) amid Bitcoin’s sideways movement for the past several days. However, Altcoin Season is not evenly distributed. The coins that increased strongly mainly focused on ETH, SOL, ADA…
This deep drop in BTC.D may not be able to recover as soon as next week. But there is the possibility of setting new levels even deeper. Looking at BTC.D technical analysis at a larger time frame, we can see the following situations are possible.
Two scenarios with Bitcoin Dominance in the near term
There are many different volatility scenarios that can be created with these two scenarios. However, in the context of greedy markets, we should consider the following scenarios:
Scenario 1: BTC.D will continue to return to May support at 39.75% and then recover. Correspondingly, Altcoins will increase for a while longer. But the distribution to other Altcoins has not increased strongly such as ETC, LTC, NEO, XMR… and Bitcoin is flat or slightly decreased. Until hitting 39.75% support. Then the Altcoins simultaneously decreased, at this time BTC either increased or decreased more strongly to regain its proportion.
Scenario 2: BTC.D will continue to fall and break the support in May at 39.75%. Likely to reach historic lows in 2018. At this time, we will probably see ETH setting new ATH and many Alcoins surpassing old peaks. BTC is still up but not as strong.
There is still a most negative possibility to explain BTC.D’s recovery, which is that the market simultaneously fell but Altcoins fell more strongly than Bitcoin. However, with the positive signals from the on-chain, this is unlikely to happen anytime soon. In addition, must rely on Bitcoin’s volatility signal in September to “improvise”.
All information is just a prediction, nothing is certain in this Crypto market, so you should equip yourself with knowledge and skills before making a decision to buy or sell Crypto.
See more: Long-term Crypto Investment for Newbies
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