Bitcoin Dominance Signals Altcoin Crash, Warns Market Strategist

Gareth Soloway, chief market strategist at VerifiedInvesting.com, warns that altcoins could fall by as much as 50% if Bitcoin's dominance continues to rise. He points out that many traders assume rising dominance means Bitcoin is doing well, but in practice, it often rises because Bitcoin slips a little while altcoins fall much harder.

Soloway notes that Bitcoin's dominance has broken above a long-running downward trend line and then dropped back to retest that line. If it holds above that level, he expects dominance to climb further, leading to two possible outcomes: Bitcoin moves sideways while altcoins lose ground or Bitcoin pulls back slightly while altcoins fall steeply.

Soloway estimates that a 10% fall in Bitcoin could push it back to the mid-$70,000 range, with altcoins losing 30-40%. A deeper 20% correction in Bitcoin could see altcoins drop as much as 50%. He says the level to watch is $81,000 - if Bitcoin falls below it, its current bull flag pattern will have failed and could open the way toward $70,000.