- Alt season could be about to get a boost as Ethereum breaks two-year downtrend against Bitcoin
- Alt market cap is approaching critical $92 billion level and Bitcoin dominance has dropped
- Bitcoin is set for a big move which could wreck alt season hopes
Alt season could be set for another leg up after Ethereum broke a two-year downtrend against Bitcoin, with the alt coin market cap and Bitcoin dominance chart all pointing towards further alt expansion. However, with Bitcoin approaching the end of a long term wedge itself, there is the threat of alt season being ruined before it has begun.
Ethereum Breaks Downtrend From August 2018
Ethereum has been pushing against its long term resistance on several occasions this year, a resistance that began back in August 2018, but it finally seems to have broken through, with confirmation coming via two daily closes.
With Ethereum being a bellwether for the alt market in general, this is a very bullish sign that alts could be about to turn the tables on Bitcoin after almost two years of suppression.
Of course we have already seen several alts performing gravity-defying feats in recent weeks, and this was with Ethereum being stuck in a downtrend. Having broken through like this, we should start to see even bigger moves across the board.
Alt Market Cap and Bitcoin Dominance Provide Further Evidence of More
There is further evidence to suggest that alts are primed for a bigger move, one of which is the alt market cap. We outlined three weeks ago that if the alt coin market cap could reach the $92 billion mark that alts had a chance of strapping on the rocket boots, and this is just what it has done:
Source: Crypto Day Traders
Allied to this we can also see that Bitcoin dominance is also at a critical level:
Source: Crypto Day Traders
Source: Crypto Day Traders
Bitcoin dominance has been in an uptrend ever since alts enjoyed a final explosion in January of 2018, with the trendline not broken until the last few days. If the uptrend can finally be broken here then we have yet more fuel to add to the alt season fire.
Bitcoin Could Spoil the Alt Season Party
There is however a caveat – Bitcoin. Bitcoin has clawed its way back into a wedge whose uptrend started way back in August 2015 and whose downtrend started in December 2018:
Bitcoin has been trying to break out of this wedge since May but gets beaten back each time. If it can finally push its way through then a run into the $11,000 area is feasible, which would kill alt dominance as the money floods back into Bitcoin. On the other hand, if Bitcoin drops out of the wedge then alts will drop with it in dollar value, although some stronger will increase their Bitcoin comparative value.
If that were to happen we would have to assess the situation once Bitcoin stopped falling and see what the drop has done to the alt market cap and Bitcoin dominance levels. An alt season could still be on the cards, but, as always, a stable Bitcoin is what’s needed for that. And it doesn’t look like we’re going to have one for much longer.
