Bitcoin dominance has potentially reversed, Altcoins could be decimated throughout the end of the year

Amid the boom in DeFi and some DeFi tokens that have shown significant gains, bringing in optimistic sentiment for traders, helping to push Bitcoin price above $ 10,000, and holding the level of importance for the longest period of time since Ever. Furthermore, as Bitcoin Dominance is likely to reverse and if the weekly close above critical levels, altcoins could be destroyed throughout the year-end and early 2021.

Bitcoin dominance climbing while alts suffer clearly shows this process in price action

Bitcoin price is once again overcoming resistance at $ 12,000, while the rest of the financial world crumbles around it. Stocks are falling, gold has a small step backward, and altcoins are flowing out as investors swap tokens for BTC.

The turnaround of altcoins and back into Bitcoin could be the reason behind Bitcoin’s recent strength while the rest of the financial markets fail.

Bitcoin dominance soaring while mass hit clearly shows that the process is underway. Profiting from DeFi profits in the summer has made Bitcoin resilient even in negative news, exchange hacks, …

bitcoin-price-dominance-has-potentially-reversed

A weekly close above the mid-BB moving average could be a sell signal for altcoins | Source: BTC.D on TradingView

Combined with institutional and corporate money starting to come in, Bitcoin could outperform the rest of the crypto market, but it is all contingent on a weekly close above the mid-BB. Past instances where BTC.D was able to close above the mid-BB – the moving average the Bollinger Bands are calculated from – resulted in a strong push to the upside, decimating alts in its wake.

The last time BTC dominance was broken and altcoins left behind was in 2019 when Bitcoin exploded to as high as $ 13,800. Bitcoin is more bullish this time around and only has resistance above $ 12,000 to compete before a new all-time high is established.

Investors know this and can move their capital out of altcoins and into Bitcoin. The last two weekly candles closed above the mid-BB, resulting in a push to the Top Bollinger Bands and an average gain of 38%. Another rise of similar stature will take BTC.D to dominance as high as 83%.

bitcoin-price-dominance-has-potentially-reversed1

Past weekly closes above the mid-BB moving lead to 38% on average move | Source: BTC.D on TradingView

Such a drop will completely erase the 2017 crypto bubble and altcoins’ impact on the price rise. If this happens, even as Bitcoin’s value goes up, the altcoins will likely be crushed further.

You can see the Bitcoin price here.

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