- BTC.D surges in price as altcoins suffer a bloody day in crypto.
- BTC.D is attempting to break above 8 and the 20-day exponential moving averages as altcoins struggle to hold their key support.
- BTC.D price is set to rally to 48% as it could spell more pain for altcoins.
Many altcoins have rallied across the market as Bitcoin (BTC.D) dominance remains below the 40% marked area, allowing altcoins to rally when the market recovers. As Bitcoin Dominance (BTC.D) rises from the ashes, we could see the price of altcoins take more pain than expected as the price surges to 50%.
Bitcoin dominance is the percentage of the total cryptocurrency value that is made up of bitcoin. Its basic premise is that as BTC becomes more dominating, the value of altcoins will decrease.
state of the market
Market situation | Source: On Coin360.com
After relief jumps and crypto market cap looking poised to rally to highs with hopes for altcoins joining the party, that was left short as many altcoins saw price declines, with many theirs Losing key support with more changes or going down BTC.D price continues to rise.
Bitcoin Dominance (BTC.D) price analysis on the weekly chart
Weekly BTC.D Movement | Source: BTC.D On Tradingview.com
Many altcoins have shown as much strength as the rally, others have posted double digit gains coupled with the fact that BTC.D is down as there is not much bitcoin effect during the price drop.
As BTC.D is about to break its long downtrend, it could impact the price of altcoins as BTC experiencing a downtrend could impact altcoins performance and the time it takes altcoins to recover from the retracement.
BTC.D rallied to a 72% high as most altcoins were dormant with no real price action during this period, although BTC saw good price action. BTC.D’s surge is a downside for most altcoins as it usually affects their move higher and suffers more declines when prices go down.
Altcoins perform better when the BTC.D value is below the 30% mark area as this helps altcoins react faster and better to price declines when BTC suffers a price drop. If the price of BTC.D breaks through and closes above 41.5%, it could mean that altcoins would suffer more pain as BTC declines in value as the impact on altcoin prices will be greater.
Weekly Resistance for BTC.D – 41.5%.
Weekly support for BTC.D – 40%.
Price analysis of BTC.D on the daily chart (1D).
During the day, BTC.D was rejected at the 48% level as the value retreated to 38% where it formed good support to bounce off this region. The value of BTC.D continued to move in value as it formed an ascending triangle with price breaking out. A break and close above 41.5% would mean that altcoins will suffer a bigger price drop as BTC falls in value.
Daily resistance for BTC.D – 43.1%.
Daily support for BTC.D – 38.5%.
Featured image by zipmex, charts by Tradingview
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