As Bitcoin continued its rise, altcoins couldn't keep up. This isn't the first time; the market has experienced this many times. The general pattern is as follows:
1. Global liquidity increases, providing a kind of spark to the market.
2. Bitcoin catches fire, and a bull market begins. If global liquidity increases during this time, great.
3. For various reasons, altcoins don't rise at the same pace as Bitcoin, and therefore Bitcoin's dominance begins to gradually increase.
4. When the market reaches saturation, dominance declines, leading to a rotation into altcoins.
5. The altcoin market capitalization equals Bitcoin's, and the bull market begins.
We're currently at a stage where Bitcoin's dominance has peaked and liquidity is still rising. The beginning of a decline in dominance will trigger a market rotation. This will trigger a capital flow into altcoins, bringing their market value equal to Bitcoin's.
Therefore, we're at the final plateau before entering a bull market. A further rise or hold in Bitcoin is expected. I'm currently buying altcoins, but I'm holding Bitcoin. I don't have a sell mindset at the moment.
1. Global liquidity increases, providing a kind of spark to the market.
2. Bitcoin catches fire, and a bull market begins. If global liquidity increases during this time, great.
3. For various reasons, altcoins don't rise at the same pace as Bitcoin, and therefore Bitcoin's dominance begins to gradually increase.
4. When the market reaches saturation, dominance declines, leading to a rotation into altcoins.
5. The altcoin market capitalization equals Bitcoin's, and the bull market begins.
We're currently at a stage where Bitcoin's dominance has peaked and liquidity is still rising. The beginning of a decline in dominance will trigger a market rotation. This will trigger a capital flow into altcoins, bringing their market value equal to Bitcoin's.
Therefore, we're at the final plateau before entering a bull market. A further rise or hold in Bitcoin is expected. I'm currently buying altcoins, but I'm holding Bitcoin. I don't have a sell mindset at the moment.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.