BTC soared to new highs this week, as it ignored the technical indicators that said a reversal was due and kept on pumping. Monday morning saw BTC hovering around $11,000, where indications suggested that it was overextended and due for a correction, but the bulls knew better and spent the past 48 hours kicking it up to almost $13,000 earlier today before a slight retrace to $12,500 that served to show the strength of the bulls right now.
With bears now seemingly in retreat and short sellers getting continually liquidated, it might not be too long before all-time highs are within sight, something that would have been inconceivable just a few weeks ago.
Bitcoin Dominance Almost at Historically Important Levels
With BTC showing no sign of reversal, attention naturally turns to altcoins, which have seen some USD growth but have been smashed in BTC terms. BTC needs to cool off before alts can catch up, but one good indicator as to when we might finally see the much-vaunted alt season is the BTC dominance chart, which currently sits at 61.4%, meaning we are closer to 2017 pre-alt season levels than we have been since:
Keeping a close eye on BTC dominance…History tends to repeat itself
Last time there was a double top in 2017 alts took off#BTFD #ALTCOINS pic.twitter.com/ombl2Ly1Dd
— Bobby Axelrod (@OneX_Capital) June 25, 2019
FOMO is clearly taking hold, if not among the general public circa 2017 then certainly among the crypto Twitterati, with predictions of $20,000 and even $30,000 making an appearance. Although BTC is still bullish, this kind of talk has the power to swiftly end a bull run, as we saw back in 2017.
Are Alts Up Next?
When alts do finally start running it is usually the big caps like ETH, XRP, and BCH that benefit first, with profits then drifting down to smaller coins. There is some evidence to suggest that the latest capitulation in alts prices is the last leg of selloffs we’ve been promised for around six months, but with Bitcoin in this mood no one can be completely confident. However, if you do want to test your luck, you could begin to average into some bigger cap alts and have a tight stop loss in place that lets you back into BTC if it starts to run. With the near term future unpredictable, a measure of cautious optimism is probably the right approach.
