Revisiting Altcoin OI Dominance

About two weeks ago we reintroduced the topic of altcoin OI dominance in one of these posts as it pertains to the stages and strength of a predominant trend. A short TL:DR from that post can be found below:

4.14 AS Post

At the time of writing the above, altcoin OI dominance was hovering in the 32%-33%, with BTC trading in the $28.5K-$29K region. Since then, we have seen BTC and ETH move to new yearly highs, at over $30K and $2,100, respectively.

Coinalyze OI Dom updated

During this same time however, we have altcoin OI dominance reach extreme levels of 34%-35%.

“Trends are generally started in the best assets, or most healthy assets. In crypto markets, this is BTC until further notice. As the trends continue to mature, we might see flows move from the best stuff to stuff with a little bit more risk (but also more return potential). This is ETH. As trends reach their final stages, we might see flows move from this more risky stuff to absolute degenerate garbage risk. This is stuff like Doge, AI coins, Dinocoins, etc. We haven’t seen any of that recently have we?” – April 5, 2022.

I’d like to amend the above statement to include PEPE coins.

BTC slide 4.20

This level of altcoin OI dominance was last seen back in April/May 2022. Before that? November 2021. Just some food for thought when thinking about trend levels, strength and duration.

Some more detailed thoughts on this topic can be found in the above video segment from our most recent Bull vs. Bear episode, Sell In May, Go Away?

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