Bitfinex analysts predict up to 2 months of BTC price consolidation after the halving.#Cointelegraphjournalists, talking about this, are already asking the question: “Can altcoins attract attention amid the decline in $BTC dominance?”
The question is reasonable and correct. Especially considering what the BTC dominance chart looks like now. The answer is they can. But for this it is necessary that the BTC price begin to reduce its volatility, preventing market dumps and switching the attention of traders to more volatile assets. In the meantime, the volatility of BTC has been increasing since April 28.
Let us recall our large market analysis from April 22. It remains in force and we are waiting for the altseason from the end of May to the beginning of April. But we allow the final takeaway for altcoins. The current week so far hints that there may not be a takeover for altcoins. And current prices may be acceptable and even optimal.
The reason is the weekly candle on dominance. It breaks the ascending structure. On April 27, we predicted a rebound based on#BTCdominance and on April 29, the rebound began. BUT the rebound gave only +1 percentage point. And on May 1, the dominance turned into an active decline. If the weekly candle does not close above at least 54.40%, the breakdown of the ascending structure will be confirmed and dominance may begin a global decline without the “Double Top” scenario.
For now, however, our priority is local growth of dominance. It is now in decline, once again testing the global downward trend since 2017 + volume level of 53.88% and promising a rebound. But for now, on this rebound, even a breakdown of the volume level of 54.54% is in question. Only if it consolidates above it and restores the upward trend can one expect a “Double Top” on dominance.
