Hurricane season incoming
Because Bitcoin is the first ever cryptocurrency, it often has a cult-like following of investors who won’t touch an altcoin no matter the potential ROI or promise behind the technology. But the current alt season has financiers in make money from the bull run transforming BTC into other coins searching for much better efficiency.
After such an incredible run by assets like Ethereum, Cardano, Solana, Dogecoin, and several others, and the fact Bitcoin is building momentum, the expectation is now that BTC dominance will soon reverse, and altcoins will see some reckoning as a result. However, according to the Relative Strength Index on month-to-month BTC.D charts, altcoin season might not yet have even begun.
Bitcoin Dominance Takes A Hit, But The Fall Might Just Have Begun
An altcoin season is defined as a period of time when alts outperform Bitcoin by a large margin. The leading cryptocurrency’s 200% returns of 2021 are stunning by regular requirements, by compared to the run that Dogecoin, Solana, or Cardano have had given that the year started, it is a weak turning point at finest.
Most cryptocurrencies have been beating Bitcoin in both USD growth and on the BTC ratio. Such altcoins are typically trending, soaring in rate after a listing or often for no factor at all. All signs point to an altcoin season that has already produced life-changing results.
Except the genuine altcoin season of this cycle might not yet have even really began, if the Relative Strength Index is any indicator.
The Level To Watch For The Altcoin Season Finale
Examining the chart above, BTC dominance has yet to reach oversold conditions on the monthly timeframe. Bitcoin itself increasing above a reading of 70 on the RSI sent out the cryptocurrency into the bullish impulse that took it to $65,000. Falling below 30 is the opposite signal.
During the last cycle, supremacy briefly dipped into oversold area, however didn’t really go bonkers up until the 2nd half of 2017. Altcoin season stayed active full steam until early-to-mid-2018, when the bear market began and Bitcoin became the better store of value.
Altcoins then fell by 95% or more in many cases, with Bitcoin just stopping by around 84% on the other hand. The metric then bounced by more than 100% from 35% to 72% dominance in favor of Bitcoin at the very top.
Currently, supremacy is spending time the 41% level, which was the 2nd in a series of peaks marking the double bottom pattern that ended altcoin season the last time. Blasting through it, should send the monthly RSI into overdrive, and ring in the true altcoin season where unimaginable wealth is made.
Other signals that the storm has yet to show up, is the Bollinger Bands just just recently beginning to refuse and broaden compared to the last cycle, together with the LMACD hardly having actually turned bearish by contrast.
