2023-05-01 12:03:34
Bitcoin’s dominance in the cryptocurrency market has increased, and analysts are warning investors to be especially careful in the coming days.. Although many are calling for a season for altcoins, Bitcoin’s (BTC) dominance has once once more broken through two-year resistance, which might lead to an altcoin massacre.
A cryptocurrency trader who reportedly predicted the $60k Bitcoin (BTC) top has taken to Twitter once more to warn investors to be extra careful in the coming days. According to Doctor Profit, BTC D (Bitcoin Dominance) broke resistance two weeks ago but then crashed belowturning out to be a “false alarm” which strongly boosted altcoins.
????Be extra careful in the next few days regarding altcoins. People calling out for altseason while #Bitcoin dominance broke out today above huge two year resistance once once more.
Two weeks ago BTC D broke out but dumped followingwards below resistance, turned out to be a fakeout and… pic.twitter.com/v6mLsHoDiq
— Doctor Profit ???????? (@DrProfitCrypto) April 30, 2023
However, maintained that the weekly candle is now closing strong and above resistance, which should be the first warning sign for investors.
BITCOIN DOMINANCE COULD KILL ALTCOINS
Resistance being tested from time to time is a clear indication that something is not right. If dominance continues to increase and Bitcoin decides to crash, it might lead to a massacre for altcoins.
He pointed out that,
“Such crashes will result in an easy 20% drop for altcoins in a single day, and this will continue as long as dominance continues to rise and BTC crashes”.
In the meantime, he noted that the best case scenario for the market would be if the dominance breakout turns out to be a “false” and Bitcoin collapses, which would lead us to a new altcoin rally.
The cryptocurrency market is a complex and ever-changing landscape, which is why Bitcoin’s dominance plays a significant role in determining the fate of altcoins.
As Doctor Profit Crypto explains, “Upward Dominance + Upward BTC = Fall of Altcoins; Dominance Up + BTC Down = Altcoin Massacre; Downward Dominance + Upward BTC = Altcoin Rally».
This equation highlights the importance of monitoring the dominance of Bitcoin and its effect on altcoins. If BTC’s dominance and price increases, altcoins are likely to suffer. But, if Bitcoin dominance and price decline, altcoins may rally.
Although this statement may be correct, It is also essential to note that the cryptocurrency market is highly volatile and anything can happen at any time.. The key is that investors need to stay alert and keep a close eye on the market to make informed decisions when investing in altcoins.
To all readers, doing your research, understanding market trends, and investing wisely is crucial. One way to mitigate the risks of investing in altcoins during a rise in Bitcoin dominance is to have a well-diversified portfolio. By spreading your investments across different cryptocurrencies, you can minimize the impact of any particular asset’s price movements..
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