bitcoin analysis
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.

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.

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:

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.

Crypto chart - Bitcoin Dominance Index
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.

You May Also Like

Ethereum’s Vitalik Buterin to Sign ‘Free Virgil Griffith’ Petition Following FBI Arrest

Ethereum co-founder Vitalik Buterin is signing a petition to free estranged Virgil Griffith who was arrested by the FBI on thanksgiving.

Analyst Explains Why Bitcoin Price Could Plummet to $2,020 in 2020

An analyst says bitcoin could crash to $2,000 to $3,000 range as…

VeChain (VET) Jumps a Whooping 26%, Thanks to an Iconic Retro Game Remake

Contrary to the rest of the crypto market VeChain (VET) is up 26% today and showing no signs of slowing down, but what’s driving the token?

Holders of Over 11 Million Bitcoin are Proving That Hodl Is Not Just a Meme

HODL is such a popular trading strategy in the crypto community that…

Bitcoin Price Suffered 31% November Slump But a Hostile China Boosts Outlook

Bitcoin price dropped by 31% since October. Yet, Spencer Bogart sees strengthening fundamentals pushing BTC up in the medium-term.

Limited Edition Bitcoin Watch Beckons Mt. Gox Remnants

A limited edition bitcoin watch with a widely known Mt. Gox wallet was spotted in Abu Dhabi. Is the royal family linked to the scandal?