Bitcoin has destroyed the altcoin market in 2019, but one contrarian crypto trader believes BTC is about to suffer a reckoning. | Source: Shutterstock
By CCN Markets: It’s easy to miss just how badly bitcoin has clobbered altcoins since the crypto market’s latest bull run began.
From Ethereum all the way down to Stratis, almost every coin has developed an ultra bearish market structure.
There’s no denying that the charts look horrible. This is perhaps the main reason why many on Crypto Twitter are already delivering an altcoin eulogy.
Just checked some weekly altcoin charts.
My conclusion: Alts are dead.
— George (@George1Crypto) August 20, 2019
There’s so much fear, uncertainty, and doubt some crypto investors have already accepted their grim fate.
For instance, a pseudonymous Twitter account named Mrs. Henry recently capitulated. The person behind the account claims to have lost $242,000 in two years of trading altcoins.
PORTFOLIO UPDATE:
Invested 12/2017: $280,000
Sold 8/2019: $38,000
Total Loss: $242,000
Thank you for being so kind to me over the last 2 years. Without some of you, I may not have survived my darkest moments.$ICX $ADA $ZIL $XLM $OMG $THETA $ZRX $AST $NCT $CHSB $BTC $TFUEL pic.twitter.com/KX6bJRyDHA
— Mrs. Henry ? (@Mrs_T_Henry) August 10, 2019
There’s very little doubt that despair is in the air.
However, one trader who tweets under the pseudonym Paddy Stash is defying the chorus of altcoin bears, and if he’s right, bitcoin could soon suffer a reckoning.
Here’s why.
The Uptrend of the Altcoin Dominance Index Remains Intact
Could “altseason” actually materialize in the near future? | Source: Shutterstock
The Altcoin Dominance Index measures the percentage of the market capitalization of all altcoins compared to the overall market cap of all cryptos.
In January 2018, the index posted an all-time high of 67.55 percent, leaving bitcoin with less than a one-third share of the crypto market. Since then, it has been in a downward spiral.
Nevertheless, Paddy Stash remains upbeat. Here’s what he wrote in a tweet:
For all of those that feel hope is lost for #altseason.. Its not.. Its not at all.. Remember, EVERYTHING in life is cyclical. THis chart has followed the same (cycle) trend for 6 years.. Lets keep it going another 3 years!!! THis chart indicates, a bounce is on the horizon! ?? pic.twitter.com/UIqgSorH2y
— Paddy stash (@paddystash) August 20, 2019
Confident about the cycles of the altcoin market, the trader believes that a strong bounce might be due in three weeks.
The good news is that the analyst’s prediction comes at a time when Bitcoin Dominance – which is currently near a 30-month high – looks weak.
Bitcoin Dominance Looks Ready to Plunge
The Bitcoin Dominance Index looked unstoppable for a couple of months.
However, the index appears to have lost steam after printing bearish signals. It broke down from a bearish rising wedge. On top of that, the daily RSI is painting a large bearish divergence.
The Bitcoin Dominance Index is running on empty | Source: CoinTrader
The fall of the index is a positive development for altcoins. It can mean that capital is flowing out of bitcoin and moving into other cryptos.
If that’s the case, we might see altcoins rally in the coming weeks, as Paddy Stash predicted.
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