The legendary trader recalls that Bitcoin Dominance dropping below 45% is a historically bearish sign for Bitcoiners. In early 2018, it resulted in a bloody massacre for bulls.
“Just pointing it out”
According to the latest tweet by iconic trader and analyst Peter Brandt, the last time Bitcoin (BTC) dominance was so low, it coincided with the painful drop in the Bitcoin (BTC) price.
— Peter Brandt (@PeterLBrandt) September 7, 2021
When Bitcoin Dominance, a ratio between the market capitalization of Bitcoin and the rest of the cryptocurrency market, was close to 40%, it resulted in an 82% drop.
Today, on Sept. 7, 2021, the Bitcoin Dominance (BTC.D) indicator revisited Q2, 2021, lows near 41%.
In May 2021, it briefly slipped below 40% for a few hours, according to TradingView statistics. Meanwhile, the CoinMarketCap tools register ed the last sub-40% plunge in 2018.
Mr. Brandt shorted Bitcoin (BTC) only once in his life
The followers of Mr. Brandt asked him whether it is time to short Bitcoin (BTC), i.e., to open the position in appreciation of its price decline.
The veteran trader avoided recommending such steps:
I only shorted Bitcoin once in my life – in Nov 2018.
Thus, he stressed that his observation should not be interpreted as a price prediction.
On-chain analyst Lex Moskovski emphasizes that the ongoing situation cannnot be compared to that of early 2018:
Completely different fundamentals and market structure renders this data point irrelevant. Pure coincidence if it will.
In the last hour, Bitcoin (BTC) erased almost $10,000 to touch an intra-day low at $42,900.