Bitcoin dominance looks like it is about to fall again despite the price looking ever more likely to break out, suggesting that Bitcoin and alts could go up together in the coming weeks. There are a few alts in particular I’m looking at in the next days and weeks, but a marketwide bounce should see most coins joining Bitcoin in the green if that is how the situation plays out.
Bitcoin Still Looking Good for a Bust Out
Starting as usual with Bitcoin, it continues to hug the 2.5 year trendline, seeing another rejection over the weekend. However, on a macro level I continue to be bullish and believe that we will soon see the move past $10,000 that everyone is expecting. Often if everyone is expecting Bitcoin to do something it does the opposite, but fundamental factors as well as technical one support an upward move.
My bullish target remains $9,909, a level we need to break if we are to see new local highs and have the potential of reaching the next target of $10,400:
Alts Well Positioned to Join Bitcoin in the Green
As far as alts are concerned, the good news is that all evidence points to alts moving up with BTC if it did go for the $10,000 target. On Friday we were looking for a rejection of Bitcoin dominance at the 66% level and we got it, suggesting that a further drop to the 65% level is likely. This would open the door to further alt gains, buoyed by ETH’s recent run from $220 to $240:
Allied to this we can see that the alt market cap is at a critical level, having taken back $52 billion from the drop in early March:
If the alt coin market cap can breach the current $89 billion level then we should see an even more aggressive run on alts, with an eventual target of $110 billion. If alts can take this much of the market cap away from Bitcoin then we could see life changing parabolic alt runs across the board, which is something we haven’t seen since early 2018.
There are a few alts I am looking at for big gains in the coming days and weeks. RVN is one, as I outlined in a special piece today, but I am also eyeing BEAM, AMB, and XLM, all of which look ripe for a move. Whether they can outpace Bitcoin if it puts on the afterburners remains to be seen, but at least they are likely to go up in dollar value which isn’t always the case.