A close-knit cryptanalyst and trader says he is looking at a widely used indicator that he believes can help reach the top of the crypto bull market.
In a new tweet, Credible Crypto tells its 188,700 followers that it is observing a key level in the Bitcoin Dominance Index that it determines may signal the end of the boom cycle.
“Would you like to know when to start making profits on your altcoins and be careful about a possible end to this bull run? When the BTC dominance falls below 30%. By then, you’re selling too early. “
The Bitcoin Dominance Index is a metric that traders rely on to measure the value of BTC relative to all other crypto assets. A falling Bitcoin Dominance Index indicates that BTC is depreciating compared to altcoins. This can also indicate that other tokens are gaining in value more than BTC.
In 2018, Bitcoin dominance dropped to just 35% before the crypto boom cycle stalled. In the current bull market, Credible Crypto expects the index to trend lower as it expects investors to allocate more capital to altcoins.
“This time I expect that we will go deeper than we did then. From a fund’s point of view, the number of Altcoins that have come onto the market since inception is constantly increasing. So it stands to reason that as the space increases, the BTC dominance will continue to decrease over time. The deep in BTC The dominance during this run should exceed the low of the last run.
BTC dominance will continue to bleed to lower levels than ever before. “
Regarding XRP, the trader is issuing a warning that Ripple’s native asset may fall back to $ 1.14 if it doesn’t offer crucial support at $ 1.45.
“Not a big fan of the slow dragging of our support here. Would have liked to see a greater departure from this level. As long as the green region holds, we are fine, but we lose it and we could see a drop down (dotted green line) before the next stage goes up. XRP. “
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Selected image: Shutterstock / IM_VISUALS