Browsing through crypto Twitter or any Bitcoin or cryptocurrency-related subreddit, lately, there’s been talk of an altcoin season brewing right under the noses of crypto investors everywhere.
However, a bull flag forming on BTC dominance could not only keep an alt season from occurring, but it could also deal altcoins a crushing blow and bring their valuations a lot closer to zero.
Cryptocurrency Market Reaches a Pivotal Moment For Bitcoin and Altcoins
The cryptocurrency market is at a critical junction. Bitcoin sentiment is bullish once again. Fundamentals are screaming buy, and technicals point to the asset’s long-term uptrend resuming.
The same can’t be said for altcoins, which seem to be struggling to find momentum alongside the first-ever cryptocurrency.
Even clear breakouts through over 800-days of downtrend resistance have thus far failed to reignite the interest in the altcoin space that once was.
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Venture capitalists conclude that the days of easy money in crypto are likely over. Some analysts even claim that these assets will never revisit their former all-time high valuations, while others believe that altcoins will eventually go to zero.
If a chart pattern in BTC dominance charts confirms as valid, altcoins will soon find themselves a lot closer to zero, as Bitcoin could soon eclipse the alternative crypto assets.
BTC Dominance Could Spike to 85% If Bull Flag Pattern Confirms
Bitcoin’s last halving kick-started the first-ever altcoin season, but this time around, alts have only suffered. The suffering may pick up in severity, according to BTC dominance charts which are signaling continuation to the upside with a clear bull flag formation.
Bull flags are often continuation patterns, and typically break bullish to the upside. Bull flags have a tendency to trend downward before the upward breakout, further shocking bears with a powerful pump.
These moves are calculated by taking the flag pole and adding its length to the top of the pattern where the breakout occurs.
In the chart above, at the end of the crypto bubble, BTC dominance formed a W-shaped double bottom.
The initial rise from there formed a bull flag and downward sloping channel. This pattern eventually broke up, confirming the bull flag pattern as valid.
After another measured move matching the height of the first flag pole, another bull flag appears to be forming.
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If this, second, downward sloping channel breaks upward, it could send BTC dominance to nearly 85%.
Such a move would either require an enormous move in Bitcoin to the upside that isn’t reflected in altcoins, or altcoins will bleed into Bitcoin in a big way.