- Bitcoin dominance dropped sharply to a critical support level yesterday
- Bitcoin looks ready to move up again in the near future
- Being prepared is the key to making sure you realize your alt profits
Bitcoin dominance has dropped to a make or break level which, one way or the other, brings the current alt season one step closer to its end. The level has been dropping almost consistently since March 14, and yesterday hit a crucial support level at the 56.25% region:
The sudden drop coincided with a drop in the Bitcoin price which acted as a test for alts, a test they passed with flying colors, with many jumping back to their prior levels or beyond extremely quickly. However, this level represents a natural bounce point given that Bitcoin has spent over three months in decline and it is a strong support zone. The move down was also swift, suggesting that an equally swift return could be on the cards.
This isn’t to say that a rebound would be successful. The first test would be the prior support level at 57.66% which, if it was able to flip and use as support again, would be enough to suggest that Bitcoin is ready to take back its market share. If this level were to be rejected however then we would very likely see a drop to the boss level support area:
If this level is reached then alt season is pretty much over, as a rebound move by an oversold Bitcoin (in comparison to alts) is almost guaranteed. A Bitcoin pump would naturally assist with a rise in dominance, and this is exactly what we could be about to see:
Planning Your Move From Alts to Bitcoin
With Bitcoin gearing up for a big move then, the smart thing to do would be to send any alts you are in profit on to exchanges and watch out for a reaction at 57.66% – if it rejects then you can prepare to sell them at the boss support level, and if it flips it to support then you know the time is right to move back into Bitcoin.
Whatever happens from here, alts have had a simply incredible run and if a rise in Bitcoin dominance acts as a reminder to take profits, then that’s a good enough reason to do so.