Rising Bitcoin Dominance Signals Altcoin Crash

Gareth Soloway, chief market strategist at VerifiedInvesting.com, warns that altcoins could be in for a correction. According to him, Bitcoin dominance has broken above a long-running downward trend line and is now retesting it. If it holds above this level, he expects dominance to climb further.

This could lead to a 30% to 50% drop in altcoins if Bitcoin only dips slightly. Soloway estimates that a 10% fall in Bitcoin would push its price back to the mid-$70,000 range, while a deeper 20% correction could see altcoins drop as much as 50%. The level to watch is $81,000, with a daily close below it indicating that Bitcoin's current bull flag pattern has failed and could open the way toward $70,000.

Soloway notes that despite this warning sign, Bitcoin's short-term chart remains bullish. However, he flags two concerns: a trend line drawn from earlier lows acting as resistance, and a heavy trading zone above the price where many holders who bought earlier may sell to break even.