Amsterdam Stock Exchange trader Crypto Michael recently noted that Bitcoin dominance – the percentage of the cryptocurrency market’s value that is made up of BTC – has started to show trend reversal signals after a multi-month uptrend. These signals include the breakdown of an ascending triangle and bearish divergences.
2019 has undoubtedly been recently a year for Bitcoin so far. Altcoins, which were all the rage in 2017 and early-2018, have been wildly underperforming the market leader, with some of these cryptocurrencies now trading at lower prices than where they started the year.
But for some reason or another, traders and analysts have collectively started to suggest that altcoins are bottoming against Bitcoin – sparking discussion of what some hope to be an “altseason”, a segment of the crypto market cycles during which altcoins rally by hundreds of percent.
In the chart below, the analyst noted that the last three times such bearish divergences were seen, Bitcoin dominance fell in the weeks that followed, often by upwards of 10%.
Rampage, a prominent cryptocurrency trader, has echoed this narrative. They recently argued that Bitcoin’s dominance is “clearly topping out on the one-week”, before adding that he is expecting for Bitcoin dominance to fall by 8% from current levels as he expects for BTC to begin to approach $6,400.