BTC Dominance And Alt Season Thoughts

The question on the minds of many active investors and traders in the crypto market right now is: When will the Bitcoin season end and the alt season begin? In this current cycle, we've witnessed numerous altcoins delivering substantial returns. However, this is just the tip of the iceberg. When Bitcoin's dominance starts to decline and the alt season kicks in, we can expect every cryptocurrency to potentially experience a 10X surge. As the frenzy unfolds, let's delve into what I'm observing and my thoughts on the matter.

As evident from the chart, Bitcoin Dominance is currently on an uptrend. Historically, whenever the dominance reaches the lower line, we observe a bounce, and a similar pattern is emerging in the Relative Strength Index (RSI). Presently, the 50 RSI level serves as support, and we're attempting to breach the resistance in the small box, which stands at around 54%-55% BTC dominance. This breakthrough is likely imminent, perhaps even within this month. My primary target is a BTC dominance range of 58% - 63% as the peak of this cycle. However, achieving this level might take weeks or even months. Yet, when it eventually gets rejected, anticipation will soar. Everyone will start searching for the next life-changing project to potentially become millionaires. The euphoric period will commence, and emotions will resemble a roller coaster ride.

For a better perspective, let's also take a look at the total 3 chart, the one that doesn't include BTC and ETH. This is where we can gain a clearer understanding of the true position of altcoins.

Right now, the total 3 chart requires a 55% increase to reach the previous cycle highs. If we collectively agree that this time the total 3 will also surpass its previous high, then my target will be around $1.5 trillion to $1.7 trillion as the cycle high. This implies a move of 137% from our current position. Consequently, a significant influx of capital will flow into altcoins. Therefore, the plan is to identify promising projects, start accumulating, and await this development.

However, it's important to acknowledge that nothing is certain, and I will continuously reassess my strategies.

Posted Using InLeo Alpha