Bitcoin’s dominance is keeping altcoins down, says one analyst. Until things change, don’t expect a big altcoin rally.
Bitcoin’s Reign Supreme
Bitcoin’s market dominance is at a high of 65.72%, and it’s not showing signs of slowing down. Both the monthly and weekly Relative Strength Index (RSI) readings are above 70, indicating strong bullish momentum. This means Bitcoin is sucking up most of the investment money, leaving little for other cryptocurrencies. The analyst, Tony Severino, points out that this has been going on since late 2023. The RSI is well above its moving average, suggesting this trend will continue.
Bad News for Altcoin Investors
Severino’s analysis shows that as long as Bitcoin’s dominance stays high and the RSI remains above 70, altcoins will likely underperform. In short: No significant gains for altcoins until Bitcoin’s dominance weakens.
A Dragonfly Doji Appears
Severino also spotted a potential “Dragonfly Doji” candlestick pattern on the weekly Bitcoin dominance chart. This pattern usually signals a price reversal, but since it’s appearing during an uptrend, its meaning is unclear. It could mean Bitcoin’s dominance continues to grow, or it could be a temporary pause. If the candle closes above 65.65%, it’ll likely confirm continued Bitcoin dominance./p>
