Popular Crypto Trader Issues Major Altcoin Alert As Bitcoin (BTC) Dominance Level Rises
A widely followed crypto analyst warns that altcoins could falter as Bitcoin’s (BTC) dominance strengthens.
Pseudonymous analyst Kaleo says his 583,200 Twitter followers that BTC will likely continue to gain on the Bitcoin (BTC.D) dominance chart and capture more of the crypto market value.
BTC.D tracks how much of the total crypto market capitalization belongs to the king crypt. A rising BTC.D chart suggests Bitcoin is rising faster than altcoins themselves.
“Bitcoin dominance has continued its rise after the mini alt rally we saw after the Shanghai upgrade. BTC.D is breaking back above the channel without clear resistance before ~52%, which has been the target area we have been discussing since December.
At the time of writing, Bitcoin is worth $29,690 with BTC.D at 48.68%.
According to Kaleo, the increase in Bitcoin’s dominance will likely the reason liquidity to flow from altcoins into BTC.
“This means that Bitcoin should continue to be a black hole of liquidity for the market, and the majority of altars will bleed into its strength. There will obviously be outliers, and everything can still rise in USD (US dollars), but BTC is completely clearly still king.”
The merchant says that the second largest crypto by market capitalization, Ethereum (ETH), is likely to decline further against Bitcoin in the near term.
“ETH/BTC: ETH had a nice upgrade after the Shanghai upgrade, but has fallen steadily since. I’m still targeting a decline towards the December 2022 targets at the beginning of this thread. Expect to see an acceleration as BTC rises from $30,000-$40,000 .”
At the time of writing, ETH/BTC is $0.064 ($1,923), down 1.3% in the last 24 hours. Looking at his chart, Kaleo predicts that ETC/BTC will fall below $0.056 before a bounce up.
An altcoin on the trader’s radar is the decentralized exchange Injective (INJ).
According to Kaleo, INJ see you later being an outlier by continuing to show strength again Bitcoin. He tracks INJ can cross the $10 level.
“Opened a small INJ long here. I’ve missed so much of this rally that it’s finally time to respect the pump. Send it to two digits.”
The crypto trader too says INJ’s pattern on the lower timeframe is similar to the continuation patterns altcoins showed in 2021.
“It’s also fun to see LTF continuation setups like this too. Reminds me to play with altcoins in 2021.”
Injective is trading at $9.05 at the time of writing, up 8.3% in the last 24 hours.
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