A pseudonymous cryptocurrency analyst and trader who correctly called bitcoin’s 2018 bear market bottom slightly above the $3,000 mark has warned that the flagship cryptocurrency’s share of the crypto market is set to soon rise.
In a tweet, first spotted by Daily Hodl, the trader Smart Contractor told his 94,000 followers that he is selling altcoins as he expects bitcoin’s dominance to rise in the near future. He noted, however, he wasn’t sure whether BTC’s dominance will rise because of its price rising, or because altcoins will endure a correction.
Bitcoin’s dominance, according to TradingView, has been plunging over the last few weeks as the prices of several altcoins surged. Bitcoin’s dominance measures the flagship cryptocurrency share of the cryptocurrency market.
Analysts look at BTC’s dominance to predicted whether bitcoin will outperform other top cryptoassets, or whether altcoins will soon surge in so-called “altseasons.”
Smart Contracter’s prediction could mean altcoins will soon fall, as bitcoin has recently tested the $50,000 mark, which he predicted In March 2020 would be this bull run’s top.
CryptoCompare data shows bitcoin is currently trading at about $48,000 after hitting a new all-time high of $49,670, which may have matched Smart Contracter’s prediction. Fellow analyst Lark Davis commented on the trader’s strategy, pointing out it’s not a bad idea to lower altcoin exposure.
In a video another analyst, Michaël van de Poppe, mapped out key support and resistance levels for bitcoin and said there’s a key line at $43,000 that must not be broken. If it is, BTC’s retracement could take it back to the $37,000 mark. If it holds, however, it may rise to $60,000.
Featured image via Pixabay.