Market Cap Analysis: BTC Dominance Rejected, Alt Season Ahead?

In this article, we will analyze the current state of the cryptocurrency market through the lens of market cap, BTC dominance, and major indices. We will also look at the potential for an alt season, the impact of the upcoming Bitcoin halving, and which coins are outperforming BTC in the long term. Finally, we will provide a short-term perspective on the price of Bitcoin.

First, let's have a look at market cap.

The BTC dominance was rejected by resistance at 49% with this reverted hammer candle on week of April 23. It could mean the market cap will flow into altcoins. And, on the right chart, the RSI is oversold and getting closer to the 50 mark which is, on this 2 weeks chart, an indicator of alt season.

Now, if we look at the Total market cap, we can see that it significantly grows after a bitcoin halving. The next one is just in 1 year, so be patient!

It's also important to look at major indices, since they can impact the price of the crypto market. The S&P 500 is currently trading in a triangle, and seem to bounce on the top of it these last days. It could mean more action to the downside.

Here is my "BTC destroyers" chart, and right now, only ETH and BNB, and maybe MATIC are outperforming bitcoin on the long term.

Here is a bear's perspective on Bitcoin: I like to compare Bitcoin and Nasdaq price as they are strongly correlated. A double top is forming on Nasdaq price and could be bad news for BTC price.

Now on the short term for Bitcoin: The 4 hour chart is printing a double bottom, it will be valid if price climbs back to 28 000$, the target will then be 28 880$. However the bigger trend is bearish, price currently below all moving averages, if price breaks below the bottom of last few day's range at 27 100$, next target for the bears is 26 660 given by fibonacci levels.

Written by Cyatophilum - Created 8 months ago - Last edited 8 months ago