Over the weekend, the altcoins market began to experience a pullback after a huge rally that shook the market beginning with Ethereum. While the trend of the market is turning bearish, the market receives a hit of another news that the electric cars manufacturer has engaged a massive purchase of Bitcoin and thus, sets the cryptocurrency market on fire.
Looking at the BTC Pairs, the altcoins began to bleed massively all across the board. But paying cognizance to a particular technical indicator and the dominance of BTC in the market, the current price action seems to be more of a temporal shakeout before the blooming season of the altcoins begins.
As the already heated market is waiting for an explosive hit to start its unrestricted surge, a filing with the SEC – Securities and Exchange Commission reveals that Tesla owned by the richest man in the world, Elon Musk, who has been showing an affectionate interest in BTC for a while now bought Bitcoin worth $1.5 Billion.
Though the purchase has been done earlier it was the news of it that caused a cosmic shift in the market as the price began to surge. At that time, some exchanges like Binance went down because of the corresponding demands of other investors that wanted to purchase BTC.
There are more reasons for investors’ interest in buying BTC than capitalizing on a further bullish run, but the support from such prominent people like Elon Musk has made most investors in the cryptocurrency market dump altcoins in exchange for more BTC.
Though news leaves the Altcoins Bleeding, a technical indicator and BTC dominance suggest that it is a mere shakeout.
But in these, analysts have revealed that the current events and trends can be deceiving according to the BTC dominance and the Ichimoku Kinko Hyo technical indicator.
BTC Dominance is a kind of metric that is used to weigh the commands of the crypto market beast against the rest of the coins in the crypto space. Though for a long time, BTC has enjoyed over two-thirds of dominance in the market, there is a possibility that it will lose dominance for good soon.
In an attempt to set a new ATH – All-time High in the market dominance, Ethereum breaks its record and BTC fell in dominance.
However, looking at the Ichimoku Kinko Hyo Technical Indicator on a weekly timeframe, Bitcoin is being rejected as a bearish retest is in motion. If the retest holds and it breaks downward, the rallies by the altcoins recently are just a tip of what is to come.