Where Bitcoin goes from here may be very telling for altcoins...

As you may have noticed, the price of bitcoin has surged over the last couple days.

Rising from about $7,700 to about $9,500 in roughly 2 days time.

And as you may have also noticed, some of your favorite altcoins didn't fair so well this past day or so.

That may be an aberration, or it may be a harbinger of things to come...

Bitcoin will likely tell us what to expect from altcoins in the coming weeks and months

Right now, bitcoin is at an inflection point.

In terms of its dominance index, it is at the top of a downward sloping channel that it has been in for months now.

Check it out:

(Source:

https://twitter.com/JohnTrash3/status/1255838739034779648/photo/1

- JohnTrash3

)

If bitcoin and the dominance index were to break out to the upside of this channel, it likely means bad things for altcoins.

Conversely, if it gets rejected around this level, it could mean very good things for altcoins.

Depending...

Altseason is a fickle thing...

Historically it has been rather difficult to predict when an "altseason" would occur.

By the way an "altseason" is a period of time where altcoin prices tend to significantly outperform bitcoin.

They tend to happen when bitcoin trades sideways to slightly down or slightly up.

A big move in either direction can be bad news for altcoins...

A big move up and money flees altcoins to chase bitcoin.

A big move down and money flees to tether and stable coins to just get out of the carnage.

But, with just the right amount of volatility altcoins can see massive gains due to their relative small market caps and relatively thin liquidity.

(Source: https://medium.com/cryptoaddicts/what-is-altseason-b61c39d72dca)

Ideally, we would like to see bitcoin slowly consolidate some of the recent gains to the point money starts moving out of bitcoin and into other projects.

The long term trend of the bitcoin dominance index has been down for years now, though that may not be as bullish as one might think to existing altcoins as new altcoin projects are always popping up, so that doesn't necessarily mean that the older original altcoin projects are making up ground on bitcoin.

The Bitcoin Halving is now less than 2 weeks away...

The next couple weeks could get volatile for bitcoin due to its block reward halving and that may spell some trouble for altcoins.

In HIVE's case, it may be small enough and new enough still that bitcoin volatility doesn't necessarily guarantee falling HIVE prices. In fact, HIVE could be seen as a safe haven of sorts of bitcoin falls dramatically and HIVE does not.

In that scenario we could actually see HIVE perform quite well in both BTC and USD terms.

We shall see.

The next couple weeks will be interesting for sure.

Stay informed my friends.

-Doc