A well-known crypto strategist has identified one critical indicator that will decide whether Bitcoin (BTC) price will outperform altcoins in the near future.
The pseudonymous trader known as Rekt Capital has 312,300 Twitter followers. He claims that the Bitcoin Dominance chart (BTC.D) is all set to climb and fill a wedge pattern stretching back to early 2021.
In a twitter post, Rekt quotes that “BTC Dominance is now on the verge of breaking out of a year-long wedging pattern (black).” Hence he believes that a breach from this trend would almost certainly result in additional losses for cryptocurrencies.
The BTC Dominance graph shows the overall cryptocurrency market capitalization owned by Bitcoin. An optimistic BTC Dominance indicates that Bitcoin is gaining higher than other crypto assets. Else altcoins are falling in price while the top crypto by market cap is increasing.
Bitcoin Price To Find Base At 49% to 51% Zone
The analyst then gets deeper into the chart to indicate that BTC.D can maintain its breakout. If it happens then, it will most likely settle in the 49% to 51% zone. This was last seen in April and May 2021, when Bitcoin was valued over $60,000.
Rekt Capital ends his study by noting Bitcoin’s 200-day moving average (MA). He says this is a possible signal of what might define a BTC price drop in the present bearish trend.
According to the strategist, Bitcoin price typically slides around or may be just a few points below 200-week Moving Average (Orange). Further the analyst predicts that it is necessary for Bitcoin to plunge additional 25% from its current price to see a bottom at the 200 MA.
At the time of publication, Bitcoin is changing hands at $30,489 with an up of 3.15% over the last 24hrs.