Bitcoin Dominance Peaks at New Local High: Are Altcoins Doomed?

Holding altcoins has generally been the kiss of death for most investors this crypto cycle. While Bitcoin (BTC) has stood firm through the most difficult of geopolitical and economic headwinds, the altcoins have been hit hard just about every time. Is there any way back for alts, or will the institutional money ignore them and continue to heavily back $BTC?

Bitcoin Dominance just continues up and to the right

Source: TradingView

The Bitcoin Dominance chart (BTC.D) reveals that dominance has been moving up and to the right since September 2022. Having just made yet another local high, dominance is currently knocking on the door of the 65.6% resistance. Once and if this is breached, the next resistances are at 68% and 70.3%, with 73.6% marking a new macro higher high.

Looking to the future, many investors must be beginning to wonder if the combined altcoin market will ever be able to take the limelight from Bitcoin for any extended period of time, like it did in the past.

Total3 at critical support

Source: TradingView

Given the woes of Ethereum, the Total3 chart can provide some clues as to how the altcoins could perform over the next week or so. It can be seen that Total3 is at a very critical juncture. The support at $775 billion is absolutely crucial for the bulls to hold, and is bolstered by the top of a previous bull flag. However, if Total3 should fall through here, $670 billion would be the next major support level. 

Will $SOL fall through the last major support?

Source: TradingView

A key canary in the coal mine for the altcoins is $SOL, given that the Solana blockchain is responsible for the vast majority of transactions across all major altcoin networks. 

It can be seen in the weekly chart for $SOL that the price has sunk into the very strong and critical band of support that stretches down to $125. 

With the Stochastic RSI indicator lines heading downwards, the price may well fall through this last major support and head down to $100, and even possibly down to $75.

That said, if $BTC is able to turn things around, which is quite likely given that the bull market cycle has probably not finished, the maxim of “lifting all boats” would most certainly apply to $SOL, giving this layer 1 leader the potential to rise back to its previous highs.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.