The recent banking failures have paved the way for one of the strongest BTC narratives. As a result, BTC has been on an absolute tear. Given that there hasn’t been a huge influx of capital to crypto markets, capital from other tokens is used to bid up BTC. This is evidenced by looking at the BTC.D chart, which essentially shows the performance of BTC against other tokens.
Although charting BTC.D is considered to be somewhat of a meme, the major inflection points that mark the beginning of an “altszn” and its end are quite clear. If history were to serve as our guide, it seems that positioning in long Alt/BTC pairs has a better R/R from here on out. Of course, BTC’s narrative can take it much higher, and other tokens continue to suffer. But for now, BTC is at resistance, and a rotation into other tokens wouldn’t be out of the question.
BTC.D is mostly just ETH/BTC, and the beginning of “altszns” is marked by its rally. But ETH has its upcoming Shanghai upgrade wherein significant supply will hit the market. The potential sell pressure is huge. This, accompanied by BTC’s narrative, might seem that “altszn” might have to wait a while despite the favorable R/R of being long Alt/BTC pairs. That said, strength in ETH/BTC would probably be the earliest indication of an “altszn.”