Bitcoin Dominance Rise Could Crush Altcoin Prices

Gareth Soloway, chief market strategist at VerifiedInvesting.com, warns that altcoins could be in for a correction. According to Soloway, Bitcoin's dominance has broken above a long-running downward trend line and may continue to rise.

Bitcoin dominance measures Bitcoin's share of the total crypto market. When it rises, it often means Bitcoin is slipping while altcoins fall harder. A 10% fall in Bitcoin could see altcoins lose 30% to 40%, Soloway estimates, while a deeper 20% correction in Bitcoin could lead to an even larger drop of up to 50%.

Soloway also noted that the short-term chart for Bitcoin remains bullish and he still believes the cycle low is in. However, he flagged two concerns: a trend line from earlier lows acting as resistance and a heavy trading zone above the price where many holders may sell to break even.