- Founder of trading education platform Mastering the Markets, David Bird (aka ASX Trader), has said investors should pay attention to market indicators such as Bitcoin dominance and disregard social media hype to be successful in trading cryptocurrencies.
- ASX Trader remains optimistic on crypto, but said this cycle is different, which increased the importance of market indicators and technical analysis to time investments.
- Bird will be joined by investment educator Craig Tapping to host an event on the Gold Coast on June 21 to teach investors how to maximise their returns in complex markets like crypto.
There’s no denying it, this crypto cycle has been different from previous cycles.
So far we’ve seen Bitcoin perform reasonably strongly but altcoins haven’t yet had their usual rally despite many months of hearing that alt season is supposedly just around the corner. As yet, no significant alt season has materialised.
According to David Bird (known online as ASX Trader), the founder of investing educational platform Mastering the Markets and Certified Financial Technician (CFTe,) altcoin dominance — altcoins’ share of the total crypto market cap — has been stuck in a downtrend. This reflects this cycle’s lack of capital flows from Bitcoin to altcoins, unlike what we’ve seen in previous cycles.
He argues that altcoin investors should compare their investments’ performance to Bitcoin, not to the US or Australian dollar. If any particular altcoin isn’t significantly outperforming BTC, it’s likely not worth the additional risk compared to BTC and you’d be better off sticking with the OG cryptocurrency, according to ASX Trader.
If you’re going to take on more risk by investing in altcoins, ensure they significantly outperform Bitcoin; otherwise, it’s smarter to just stick with BTC.
ASX Trader He said there were signs of a possible reversal of this trend — what he calls a B wave, or ‘zag zone’ — back in early 2024, but that trend was ultimately rejected in March of 2024 and the downtrend in altcoin dominance has continued.
“We’re now at the 0.618 Fibonacci extension level, which is where prices often find a bottom,” he said.
If altcoins can’t bounce here and reclaim the 9% dominance level (an important past support), the next target could be down at 5.5% which would mean another sharp drop for alts.
ASX Trader Related: Altcoin “Banana Zone” Fizzles as Bitcoin Dominance and High Yields Stifle Rally
Timing The Market Is Important, Says ASX Trader
ASX Trader said it’s important to understand the market and be strategic, saying “don’t be blinded by hype or believe the 4-year cycle is your golden ticket. The market is relentless, it will entice you with hope and turn it against you.”
Related: Altseason Cancelled? CryptoQuant CEO Says Most “Won’t Make It”
Based on the current Bitcoin and altcoin dominance figures combined with other indicators, ASX Trader says “we’re finally in the zone I’ve been waiting for, where altcoins could be bottoming out.”
After nearly four years, I’m finally seeing the potential for a major macro reversal in altcoins. Just remember to watch the BTC pair, not the USDT to find the true winners.
ASX Trader ASX Trader, along with investment educators Craig Tapping and Craig Dickson, will host a full-day event on the Gold Coast to teach investors how to best navigate complex markets, such as the altcoin market. The event promises to show trading strategies in action, with live trading demos and real-time market analysis — with tickets starting at AU$249.
