Bitcoin price has just reached over $ 9,500 while altcoins have hit new lows in their BTC trading pairs.
In the midst of crypto confusion, a highly reliable indicator only gave a mixed set of signals that only contributed to the normal state of the cryptocurrency market.
Crypto market assets appear to diverge in the correlation cycle
The crypto market is like the wild west. Almost anything goes, there are very few laws or rules and there are many notorious personalities.
Speculative assets without hype often outperform assets with proven use cases.
However, the correlated relationship between Bitcoin and Altcoins is usually reliable and gives a sense of normalcy across the asset class.
Related Reading Bitcoin dominance reversal at key level points for a sustained Altcoin rally
Most crypto investors know that when Bitcoin rises, altcoins crash, and when bitcoin crashes, altcoins are decimated.
Altcoins usually shine sideways during phases of bitcoin trading.
Bitcoin’s latest pre-halving pump ran as expected and resulted in Altcoins losing value. This is very clearly visible in the BTC trading pairs of top altcoins such as Ethereum, Ripple or Tezos.
However, a number of buy and sell signals in the major cryptocurrencies – including Bitcoin and Altcoins – suggest that there may soon be a divergence in this relationship.
TD Sequential Hands Out buy and sell signals on Bitcoin and Altcoins
This divergence suggests that Bitcoin will crash soon, but altcoins will rise.
The daily Bitcoin price charts triggered a TD 13 setup sell candle for the cryptocurrency just before it halved.
Interestingly, BTC dominance has also triggered a sell signal that coincides with TD 9 buy signals for most major altcoins. The TD Sequential Indicator was very accurate in the crypto space.
Ethereum, EOS and Binance Coin all gave the buy signal, and in the past few weeks Litecoin and XRP have had similar signals.
While most crypto investors expect Bitcoin to reach the moon by halving here, it could be altcoins that are really thriving.
BTC dominance charts from 2016 show that it was actually the same week as the halving of Bitcoin that triggered the very first altcoin season and brought BTC dominance on a downward path.
Related Reading Stellar’s fractal shows how epic the next Crypto Bull market can be
As soon as the BTC dominance showed its first sign of weakness, altcoins took over and in many cases exploded with a profit of over 1000%.
These assets only increased in value in the following two years, which led to the crypto-hype bubble in 2017.
At that time, these assets peaked and then fell into a bear market.
The markets are cyclical and history repeats itself. Is it time the Altcoin cycle started again, which coincides with Bitcoin halving again?
Featured image by Pixabay