Bitcoin price is only striking distance away from potentially setting a new all-time high, or only about a 15% move higher for the new record to be set. As the top-ranked cryptocurrency surprisingly weathers the macro turmoil as of late, altcoins have suffered dramatically and for the most part bled while BTC has been rising.
Alt investors are capitulating, and moving their capital into BTC as to not miss the coming last leg up. But what exactly does this mean for the ongoing altcoin season? Is it over? Or will there be another leg up like there could be in Bitcoin – a move that is becoming increasingly clear by the day?
Alt Season, Bitcoin Dominance, And The Theory Of Five Waves Down
Bitcoin and altcoins have a very unusual relationship, despite being assets of the same class. Top traders such as Nik Patel have spent years working to understand the strange, cyclical behavior between BTC and alts, and have found some success.
After such an explosive altcoin season, the market is convinced that the music has already stopped, asset prices have topped out, and have started to reallocate heavily into the strength of BTC.
Related Reading | How 90-Year Old Market Wizardry Predicted The Bitcoin Breakout
But much like Bitcoin’s recent pullback is close to proving to be little more than a massive bull market shakeout, due to the relationship between alts and BTC, this divergence between the two types of crypto assets could be a similar shakeout.
BTC dominance suggests another wave down. | Source: CRYPTOCAP-BTC.D on TradingView.com
Many analysts, such as Elliott Wave International’s Tony Carrion, subscribe to the idea that BTC is about to enter a wave five impulse against the dollar. That would suggest that BTC just completed a wave four, which in the end was a big bear trap. But what if alts are close to finishing a wave four against BTC, with another wave to follow? That’s exactly the picture BTC dominance tells.
Comparing the total altcoin market cap sans BTC…
