How Bitcoin Dominance Could End Bullish Engulfing Altcoin Season

Bitcoin's price is currently falling, shaking the crypto market as a whole. In addition to the cryptocurrency's best correction for market cap, altcoins have been further strained. High-tier lows like Ethereum and Litecoin see an even bigger drop in BTC trading pairs, while Bitcoin's dominance has created a rising swallowing candle, just as a major technical indicator reaches an overheated state. Here's how this puts a brutal end to the current altcoin season. Bitcoin Price Flops Altcoins Bitcoin is the first cryptocurrency the entire industry has since been built, and anything other than BTC is considered an altcoin. Ethereum is now the king of this camp and has been outperforming Bitcoin in terms of performance since its inception. But due to the advantage of the first move and Bitcoin's dominance, it accounts for more than 50% of the total crypto market cap. The BTC dominance metric was created to measure the rest of the crypto market and its weight against all altcoins. Related reading | Bitcoin is "Off To The Races Again", after "Reset". BTC dominance dropped 18% from late 2020, leaving a red trail behind. However, during the massacre of the current crypto market, the statistics began to make a comeback and formed a bull-swallowing candle. A rising swallowing candle is a type of Japanese candlestick formation and often suggests a reversal is imminent. This occurs when sellers are overwhelmed by a spike in bullish purchases after a sharp bearish move. It is then up to the bulls to continue the comeback. Bull Swallow Appears As Daily RSI Over-Sell Conditions Are Reached | Source: CRYPTOCAP-BTC.D BTC Reversal of Dominance on TradingView.com Coinciding with the bull-swallowing candle pictured above, the Daily Relative Strength Index fell into the oversold zone. If there is a reversal in BTC dominance, if the altcoin season has occurred recently, Read more

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