Crypto traders looking at their portfolios may have a tough time believing that they might be losing money in a Bitcoin (BTC) bull market.

Pretty much every large coin with the exception of Bitcoin (BTC) is range trading. Also, your alts are crashing, hurting people with diversified crypto portfolios. To make matters more serious for alt holders, Bitcoin (BTC) dominance is breaking out after completing a consolidation (Figure 1). There is resistance in Bitcoin (BTC) Dominance near 57%. If Bitcoin (BTC) dominance gets above 57%, then the next move could be to 68%.

 Figure 1

Any such move to 68% in Bitcoin (BTC) Dominance would be devastating for alts. That could result in a crypto “pain trade” that is just as bad as last year, only in a different form.  

Source: charts.cointrader.pro; TradingView

Bitcoin (BTC) and the crypto universe may have to wait until stocks have completed a flush to the downside. Alts seemed to have accelerated lower since U.S. stocks topped.  

Looking at S&P futures, there will likely be another big drop to $2782 (Figure 2). That level is the 76% retracement of the recent rally.

 Figure 2

Bottom Line: The good news about these charts is the equities portfolio managers are going to have to buy Bitcoin (BTC). “Sell in May” and go away is in effect in stocks, and owning Bitcoin (BTC) may be the only way hedge portfolio managers can outperform their competition. The only questions is if and when the equities avalanche stops. If equities crash, Bitcoin (BTC) charts have to be evaluated one day at a time.

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