Cryptocurrency analyst and trader Kevin Svenson emphasized a Bitcoin (BTC) indicator that signals bullish momentum for altcoins.
Svenson told his 78,500 YouTube subscribers that Bitcoin dominance, the ratio of BTC’s market cap to the market cap of other cryptocurrencies, indicates “we might be close to altcoin season.”
“Bitcoin dominance is starting to break below its trendline, which could be a good sign for altcoins…
…In fact, Total3, the total altcoin market cap, is actually looking to provide support for Bitcoin’s drop today, so that’s a sign that the selling pressure in the altcoin market is exhausted, and we might start to see the altcoin season kick in.”
Source: Kevin Svenson/YouTube
The cryptocurrency analyst and trader added, “If you’re holding altcoins, this is almost what you want to see. Because in the cryptocurrency market, when Bitcoin drops, a lot of times Bitcoin dominance actually rises, because altcoins drop alongside Bitcoin. People want to exit those low cap speculative altcoins into something more certain, which is Bitcoin. This has been the case.”
“But this time, Bitcoin dominance is dropping alongside Bitcoin. That’s a sign that altcoins are gaining more confidence, more speculation, more money flowing into altcoins.”
Svenson also noted that altcoins are currently oversold.
“You could say that there’s actually a divergence between altcoins and Bitcoin. Looking at the altcoin market cap, the sellers are exhausted. They’ve sold too much, and now altcoins are taking the lead.”
Source: Kevin Svenson/YouTube
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