BTC dominance forms a base for a rebound in the decline since December 26. However, the downward structure on higher time frames, established since mid-July, remains.
The dominance chart from the latest reviews has been reshaped into a local "Bearish Wedge", however, it seems it is not yet ready to break through and start working it out.
The metric is testing the lower trend line of the wedge, based on the lows of November 26, December 10, and December 14-16. At the same time, dominance currently has already the second mark of a potential low on the 12-hour time frame. This adds arguments to the idea that a rebound before a possible start of the figure's development is indeed to be expected.
Unfortunately, the market has clearly accustomed us over the last few months - BTC dominance can grow precisely during market corrections. So if the marks start to develop - we will expect a correction in the market.
From positive signals for altcoins - in recent days, on December 27, dominance again showed a transition into a stable downtrend on the 7-hour time frame.
At the same time, in the rebound, almost reaching the potential breakdown level of 59.79%. And now continuing to decline. To confirm the 'Bearish Wedge' scenario, downtrends are needed on the 8-hour and 12-hour time frames.
Well, for a full bullish scenario for altcoins, we remind that we need to see a breakdown of uptrends on the daily and 3-day time frames.
We are not changing our assessments - as long as the dominance remains below 59.88% - a good picture is forming for altcoins for at least January and part of February. The most important confirmation of the bullish scenario for altcoins remains the breakout + consolidation (!) below the level of 58.08%. There was a breakout without consolidation in August-September, and the inability of the metric to consolidate below this level has brought a lot of blood to the altcoin market since then.
