I see a lot of people looking for the dom to get low and then scream “ALT SEASON” not realising that the move towards that low WAS alt season and now your at a point where Bitcoin could recover or alts could pull back.
That brings me to my next point, as the btc dom increases a lot of people will interpret this as btc moving up and alts moving down, now in some cases that may be true but not always, in fact in some cases BTC can be moving down and the dom still increasing….that just means the alts are bleeding sats whilst btc is dropping in usd value so the alts get double ended…eeekkk
You see the dom chart is pegged against the USD % share of the crypto space vs bitcoin , alt coins do not have there own USD peg, they have a sat value and pending the current price of sats at the time (the price of bitcoin ) it gets the alts a USD value.
If bitcoin was to suddenly drop 50% against USD the price of all the alts will most likely drop similar value as there value is propped up by the price of bitcoin .
Its because of this correlation that holding alt coins can be risky during uncertainty or trends against bitcoin .
Now I dont often chart patterns on the dom chart but I do pay attention to key horizontal levels to build a plan around the probabilities of direction change of both btc and alt markets.
Right now btc is gaining dom whilst dropping in price, this means alts are bleeding sats and not a good idea to be holding in the alt market, instead this is a better time to be looking for shorts on alts against the usd market for buying power (now is not the time to be stacking sats as USD is going to give you the power power at the bottom)
If the dom continues this trajectory whilst bitcoin is then the short game on alts/usd should be a profitable strategy.
If we see a pause around the 50% mark it will most likely be a temporary indecision in the market, this is not the time to be looking for opportunity and going all in on high risk moves, although it could work in your favor its best to wait for confirmed trend direction before ” placing your bets”
For now IMO keep an eye on that 50% mark and lets reassess the market conditions when we get there.