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Bitcoin Dominance Rises Pre-FOMC While Alts Bleed Out

Is Bitcoin about to steal the spotlight again? As the FOMC meeting looms, investors are fleeing risky altcoins and piling into the king of crypto. Bitcoin dominance just climbed past 59%, its highest level in months, as traders brace for what could be another rate cut in November.

With the crypto market turning cautious, coins like MYX, ASTER, and LINEA are being hammered in what appears to be a textbook de-risking move.

Crypto Fear and Greed Chart

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The big question now: is this the calm before a massive altcoin rebound, or the start of another wave of capitulation? With the BTC price steady near $124K and FOMO building across the market, smart money rotations are occurring extremely quickly.

Is Bitcoin Dominance Going to Experience Another Run Amid the FOMC Meeting?

Bitcoin dominance has been one of the most closely watched charts among traders to predict whether an altcoin season is coming or not. Once BTC.D goes up, almost everything else suffers, and this time, the case is not different.

After the breaking of well-respected 200 EMA and SMA levels from 2023, BTC.D dropped 13.3%, giving the altcoin room for growth over the past couple of months. Now, Bitcoin dominance appears to be gaining traction again ahead of the FOMC, rising 3.7% to 59%.


(Source – TradingView)

Currently, the dominance increase preceding the FOMC aligns perfectly with the chart re-testing the 200 EMA and SMA, which are bearish. Once the rate cuts are announced, BTC.D will likely nose-dive. This will result in a mass transfer of cash flow from Bitcoin and stablecoins into altcoins.

These rotations sometimes can happen really fast, and many traders position themselves earlier on speculation, trying to catch the most of those moves. On a weekly time frame, this aligns perfectly with testing the 200 EMA and SMA lines acting as support. Eventually, dominance will bounce from there, leading to another






BitcoinBitcoin

Bitcoin





1.05%



rally in the future.


(Source – TradingView)

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MYX Finance Dropping 69%, Is Recovery Possible?

The MYX chart doesn’t look pretty, with prices retracing almost everything gained in early September.

A combination of explosive profit-taking and pre-FOMC de-risking sends the price tumbling almost back to where it was before the pump.


(Source – TradingView)

In that situation, we can examine the next support level at $2.5. If the price manages to form new support and we see a risk-on bias in the market, we can consider the $9 price level as resistance and a potential reversal of the bearish sentiment for MYX.

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Is ASTER Crypto Going Back Above $2.50?

As we talked previously about the Aster price managed to find support at $1.5 region and broke out of the consolidating channel, making a lower high topping at $2.27. Then retraced back to the previous resistance, now support at $1.8 while waiting for the FOMC meeting to pass on.

If we have another rate cut, this means risk is back on, and we can expect to reach a new high and potentially reach a new ATH above $2.5 area. If we get a neutral announcement or negative, we can expect the






AsterAster

Aster





4.14%



price to consolidate above the support for a longer time period or even break down, looking once again for the $1.5 support.


(Source – TradingView)

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Is Bitcoin Dominance Declining After the FOMC: Will It Help LINEA Reach a New ATH?

Linea is another strong altcoin contender that has been gaining traction recently. There are many speculations that somehow the project will be connected to the airdrop of Metamask coin.






LineaLinea

Linea





0.28%



is currently the best-positioned coin, with many seeing huge potential once the cut rates drop. Currently, LINEA price is consolidating in a huge triangle, poised to explode. If that happens, we will see a breakout of the $0.0285 level, followed by a rally to the previous highs at $0.035.

If that doesn’t happen and the outcome is bearish, we will look for support at the $0.025 price level. Either way, this is going to leave Linea as one of the strongest contenders once altcoin season is back and risk mode is on.

(Source – TradingView)

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Key Takeaways




  • Bitcoin dominance is crawling back up pre-FOMC meeting.

  • Is this the perfect time to look for the best altcoins in the market?
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    Ivan AndonovIvan Andonov

    Ivan is born and raised on diet of shopska salad, hard work, and deep-rooted skepticism of banks. With mechanical engineering background. Discovered crypto in 2020 and never looked back. Passionate about blockchain , DeFi and everything related to cryptocurrencie and…
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