Elliott Wave Theory: Altcoin Bottom Is In When Bitcoin Dominance Reaches 78%
Altcoins2020/05/20 19:30 by Tony Spilotro
Crypto analysts use different tactics to try and predict future price movements in Bitcoin and altcoins. Due to the speculative nature of the emerging asset class, the study of emotion-driven impulses and corrections – called Elliott Wave Theory – can be particularly insightful.
According to one crypto analyst that focuses solely on the practice of Elliott Wave Theory claims that a corrective wave to 78% Bitcoin dominance will send altcoins crashing down once again, but that the target will act as the final bottom for the alternative crypto assets.
Bitcoin Volatility Expected To Further Crush Already Decimated Altcoins
Bitcoin‘s halving is now behind us, and major volatility is expected in the days ahead as Bitcoin price consolidates below the most important resistance level it has ever faced.
An explosive move to the upside could crush altcoins further. An equally powerful move to the downside also likely won’t bode well for altcoins.
Related Reading | Crypto Analyst Highlights Last Ever Bitcoin Dip Using Elliott Wave Theory
Bitcoin and altcoins experience an unusual and sometimes inverse relationship. Altcoins often thrive the most when Bitcoin trades sideways, for example. This is said to be due to boredom in Bitcoin or profit-taking from BTC flowing into alts.
Whatever the reason, altcoins could be in danger if Bitcoin price experiences an explosive move.
According to one crypto analyst’s take on Elliott Wave Theory, that explosive move could send BTC dominance to 78%, causing another major leg down in altcoins.
The fall would take alts back to 2016 prices, essentially erasing all gains from the moment the crypto hype bubble started.
See you guys at 78% #BTC dominance.. pic.twitter.com/1RUnCEtbGz
— The EW Guy (@TheEWGuy) May 20, 2020
Alt Market Bottom: BTC Dominance Could Reach 78% According to Elliott Wave Theory
Elliott Wave Theory focuses on emotion-driven impulses that take place across the market due to normal changes in market cycles and investor sentiment.
Impulse waves can be up or down, and typically consist of five full waves, with waves one, three, and five being in the primary trend direction. Waves two and four are in the opposite direction of the trend and often consist of smaller, sub-waves.
These smaller sub-waves can also be impulsive or corrective. Corrective moves in Elliott Wave Theory can also have five waves but are more commonly three-wave ABC corrections. These corrective waves can run concurrently as part of larger waves taking place across larger timeframes.
Related Reading | Elliott Wave Theory Suggests Crypto May Be Due For Biggest Correction Yet
Elliott Wave Theory is complex, but has been shown to be reliable for many types of markets, crypto included.
If Bitcoin dominance does rally to the 78% dominance level, altcoins will represent just 22% of the total crypto market. These already crushed crypto assets will be decimated further, and any remaining value will deflate.
When it’s all said and done, however, those who buy the blood will also be buying the bottom, according to the analyst’s take on Elliott Wave Theory.
You should also read...
Altcoins08/04/20 19:30 by Tony Spilotro
Bitcoin Dominance: 2-Year Uptrend Breaking Could Spark Altcoin Boom
Bitcoin dominance has not only broken down from a two-year-long uptrend, but it has also retested the trend line as resistance and failed to reclaim the key level.
With trend line support now confirme... Read More
Altcoins28/04/20 19:30 by Tony Spilotro
Buy Signal on Litecoin Paves Way For Astronomical Crypto Altseason
Litecoin has just flashed a buy signal on weekly timeframes, that could send the crypto market into an astronomical altseason. Here are the few factors paving the way for the next major altcoin boom.
... Read More
Altcoins06/05/20 22:00 by Tony Spilotro
Bitcoin Dominance Reversal At Key Level Points To Sustained Altcoin Rally
Bitcoin’s halving is here in just one week, and the first-ever cryptocurrency is widely expected to rally as a result.
But Bitcoin dominance has been consolidating at a key level. This could ind... Read More
Crypto07/05/20 19:30 by Tony Spilotro
Accurate Crypto Top and Bottom Indicator Gives Mixed Bag of Signals
Bitcoin price just touched over $9,500, while altcoins have set new lows on their BTC trading pairs.
Amidst the crypto confusion, a highly reliable indicator just gave a mixed bag of signals that has ... Read More
Altcoins11/05/20 22:00 by Tony Spilotro
Bitcoin Dominance Exposes Altcoins To Bounce or Die Scenario
Over the last month, Bitcoin dominance has grown by nearly 3%. The climb has largely been driven by the asset’s block reward halving set for less than 24 hours from now.
The latest move in BTC d... Read More