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This month has brought less volatility for Bitcoin as it trades in a consolidated range between $18,500 and $19,600. However, the CPI data plunged Bitcoin hard to $18,190 on 13 October, but it quickly recovered from the bottom range and traded in a stabilized zone.
According to Bitcoin’s market dominance, BTC formed a double bottom in the chart before rallying upwards as it followed the same pattern in 2018 and 2020.
Similarity In Bitcoin’s Market Dominance
The bitcoin market dominance chart is measured based on a ratio of Bitcoin’s market capitalization to other cryptocurrencies in the market.
On analyzing BTC’s market dominance chart, Bitcoin has already formed a ‘W’ pattern in the chart and is poised to initiate a bullish rally if it goes according to its previous trends in 2018 and 2020.
There are two critical price levels which will determine BTC’s further move: $18,000-18,300 and $23,400.
The analysis of ‘Double Bottom’ may become invalid if BTC breaks its critical support level at $18,000, and BTC can bring more rough times to its investors as it can trade near the $10K price level.
Traders can witness a positive momentum if the BTC price makes it to a resistance level of $23,400.
From the $23,400 level, BTC can move in two ways: It follows its double bottom and makes a breakout above, or it faces rejection and drops to the current price level of $19,000.
If BTC makes a breakout above, BTC may face rejection at a resistance level of $28,400 and have a slight downward correction to $24,700; then, we can expect Bitcoin to form an exponential growth to $34,500 by the end of this year.
If BTC faces rejection at $23,400, the price can drop to the current price level and may make another attempt to break $23K by the end of December.
Altcoins Season To Become A Messiah In 2023
Altcoins season is likely to continue till the end of May 2023, and it may act as a catalyst to get a wave in crypto investment portfolios.
The primary sentiment behind it follows investors who first invest their funds in stable crypto assets like Bitcoin or Ethereum to hold assets prices in a consolidated range and push market dominance. Once generating great returns from stablecoins, investors seek to earn more profits by moving their funds to altcoins.
The crypto market saw an excellent altcoin season during the crypto pump in 2018 and DeFi hype in 2020. In 2017, when investors started investing in altcoins during the crypto boom, which was mainly led by stable coins like Bitcoin and Ethereum.
However, the dominance of Bitcoin declined from 90% to 35% in 2018, and in 2020, the same incident occurred as Altcoins started to pump, and the dominance of bitcoin dropped from 70% to 40%.
The dominance chart of USDT also indicates the crypto market’s sentiment during a bullish and bearish trend, as it fell parallelly when investors started buying altcoins and stablecoins with USDT.