BTC dominance is forming a reversal candlestick structure on the daily timeframe. Again, we look at our indicator because all important trend lines have been broken, EMA remains below, and dominance has been 'wandering' around the highs at about 60% for the third day.
According to the indicator, dominance has been in a stable uptrend since July 19. During this time, there have been five (we group triangles, not counting each separately) signals of a potential high on the daily timeframe. In four cases, this was followed by a correction of dominance without breaking the trend.
Considering that we are still expecting a bull run ahead, the trend is unlikely to break this time, and the high has not been set yet. However, some decrease in dominance in the coming days or even weeks is likely. This does not mean that all altcoins will soar. But it is worth being more cautious with shorts on #ETH, #SOL.
On the weekly and monthly timeframes, dominance currently has no signal of a potential high.
The monthly timeframe is particularly impressive, where dominance has broken the high signals that appeared in the summer of 2023 and has only been increasing since then. The next potential high on this timeframe will be very significant for the altcoin market. However, it is still better to focus on the transition of dominance into a stable downtrend on the daily timeframe or the potential high mark on the weekly. These signals will warn of the start of altseason earlier.
The volatility index of BTC price continues to fulfill the forecast, rising until November 1-3.
Looking at #BTC dominance and its volatility index, the first expectation that comes to mind and fits into the scenario is a correction of BTC to $69,000, then a range without falling lower, during which altcoins will start to show growth. But there are many variables in the forecast, we will keep an eye on them.
So far, preliminarily, next week should be a week of altcoin growth. The interesting question is how much they will fall before that.
