Why Does the 69-Point Level Matter in the Real Dominance Data?
Why Does the 69-Point Level Matter in the Real Dominance Data That Altcoin Investors Should Track?
If you're an altcoin investor and you're only looking at BTC.D for dominance, you're wrong!
You haven't accepted this yet.
What Is the Real Dominance Data?
BTC.D alone hasn't been enough on its own since 2018.
Bitcoin dominance shows the ratio of Bitcoin's market cap to the total crypto market. But before 2018, buying and selling was largely done through BTC and ETH pairs (like ADA/BTC, XRP/BTC). This changed once stablecoins entered our lives. Today an investor can sell Bitcoin or any altcoin and move straight into USDT or USDC. That's why assuming that money is flowing into altcoins just because BTC.D is falling is misleading.
To see the real picture, all you need to do is type "BTC.D+USDT.D+USDC.D" into the symbol search on TradingView.
Current Situation
Dominance is currently around the 69-point level, and that's critical.
In the past, 60, 64.5, and 69 points turned from resistance into support in sequence. Just like a staircase. It climbed to 72.5 points a while back and pulled back, and now it's testing the same zone again. Dominance's RSI is currently at 47 points. It's below both the signal and the 50 mark, meaning momentum is weakening.
Weekly closes below 69 points could bring tests of 64.5 and 60 points in turn, which could make altcoin investors quite happy.
Conclusion
More than two-thirds of the market sits in BTC+USDT+USDC. The share left for altcoins is only around 30 points. Expecting a broad altcoin rally without breaking a critical threshold like 69 points might be overly optimistic. But if this threshold gets broken, there could be legitimate excitement.
Which altcoins are you invested in? Would you be happy if dominance weakens?
Waiting for your answers in the comments.
source https://www.tradingview.com/chart/BTC.D/VFP1ubn8-Why-Does-the-69-Point-Level-Matter-in-the-Real-Dominance-Data/
