BTC.D (Bitcoin Dominance) has been in a clean uptrend since April. The trendline (drawn in white) acted as support, until today, when Dominance broke below it. Short term structure was lost at around 61%. That usually means money is starting to rotate from BTC into altcoins. Traders are willing to take more risks, and move the profits from BTC into ETH and other large caps, then eventually into mid and low caps.
This break below is not (yet) a clear confirmation, but IF I’m right, we caught it early. Obviously, it could also be a fake-out, and BTC.D could continue on its way up. But considering the high leverage and the recent super-squeeze of BTC shorts, I believe it’s more likely that the downtrend will carry, at least for a while. If BTC.D loses the larger support at 59.1%, that should clearly confirm a bullish scenario for alts. But by that time, the remaining upside would be somewhat reduced.
