The altcoin market as been enjoying one of its most volatile trading periods this year with numerous altcoins rallying, breaking records, and returning double-digit gains for traders in just a matter of weeks.
Bitcoin on the other hand as been dormant and very unattractive for many short term traders. The current prolonged sideways movement as pushed traders looking for cryptocurrencies with high volatility away. This has led to a gradual shift of interest and funds from Bitcoin into the alternative Altcoin market.
Bitcoin Dominance Records A 5-Months Low
Gradually losing its position as the top dog in the crypto market, Bitcoin dominance as just recorded a 5-months low at 61%.
This level is very important because it as served as both support and resistance for the Bitcoin dominance in the past. But that is not the only thing that makes this 61% level stand out.
The last time the Bitcoin dominance got to this exact same level, it triggered a massive sell-off in the altcoin market. This led to almost all altcoins crashing and giving back their gains.
February 14th And The Events That Triggered The Massive Altcoin Sell-off
While the past does not predict the future, I believe it, however, gives us important clues, indications, and warning signs as to what to expect from the market in the coming days.
On February 14th, we saw the Bitcoin dominate crash to around 61% (the same level it currently is at right now). This deep in dominance triggered a massive sell-off in the crypto market with altcoin crashing more than 68%.
SO What Is Going On Right Now And What evidence Can We Gather?
Well right now, we are seeing a repeat of those sets of events that led to the 68% Altcoin market crash 5 months ago. Below is the full evidence I gathered from various indicators across the cryptocurrency markets.
The altcoin market is currently rallying and heading to that previous high and resistance region it got to on the 14th of February before it tanked.
The Bitcoin dominance is at that 61% level it was at 5 months that triggered the altcoin market crash.
The Bitcoin is currently at the final stage of price compression before a massive move to the upside or downside (whichever it is, it would have a ripple effect on the altcoin market).
Most Altcoin pairs have been in a parabolic price surge with little to no price retracements for the past few weeks. Altcoin prices cannot continue to go higher indefinitely, so I expect to see the bullish moves start to get exhausted with price pulling back soon.
From all the evidence gathered, I believe we might start to see the altcoins pullback in the coming weeks. However, if Bitcoin sells off, then I expect to see a massive crash in the altcoin market.
This Bitcoin analysis does not mean you should start selling altcoins, it is only my current outlook on the market and I believe the altcoin market might still continue to rally for a few more days or weeks.
To gain more information on how to partake in this coming Bitcoin Bull run and trade this cryptocurrency, you can read my How To Trade Bitcoin Guide. You can also check my top list of Best Bitcoin Exchanges To Trade With.