Others dominance (OTHERS.D) suggests “ Dip” signal for Altcoin Mid Cap and Low Cap

An interesting finding that could be XEM a reliable indicator for Capital allocation to Mid Cap and Low Cap Altcoins by the end of 2024 is related to Others dominance (OTHERS.D). A data that is not regularly tracked by investors using Bitcoin dominance (BTC.D).

Here are BeInCrypto's observations and reviews of this sign.

Also Read: Many Altcoins have "broken out", Altcoin Season Index returns to 2024 high

Signals from OTHERS.D have never been wrong in the history of market volatility

Others dominance (OTHERS.D) is the proportion of Capital excluding the Top 10 coins. This way, Bitcoin and the leading Altcoins in the market are not taken into account. OTHERS.D will show whether the money flow is favoring the rest including Mid Cap and Low Cap.

From a technical perspective, comparing the volatility of OTHERS.D and OTHERS Capital on a monthly time frame, one can quickly see that a rare signal has appeared this month.

• The volatility of OTHERS.D over the past ten years has been above an ascending trendline (blue). And OTHERS.D always tends to bounce back when it touches this trendline. This behavior shows that the money flow in the market is starting to tend to flow into Altcoin Mid Cap and Low Cap.
• Looking at the OTHERS Capital in parallel, it can be seen that the past 5 times were effective. When OTHERS.D recovered from the trendline, it was also the time when OTHERS Capital started a new uptrend. And interestingly, last September was the month when the green candle of OTHERS.D recovered from the trendline.

From this past pattern, it is possible to predict that Altcoins will recover in the last quarter of the year after having fallen very deeply in the last quarter.

“Symmetrical” Movement Between OTHERS.D and BTC.D Is Hope for Altcoin Investors

Monthly data also shows that the movements of OTHERS.D and BTC.D are symmetrical, when one increases, the other decreases and vice versa. This symmetrical behavior is also marked by the trendline of OTHERS.D as mentioned above.

Every time OTHERS.D monthly bounced from the trendline, it was the start of a strong downtrend of BTC.D. Therefore, the increase of OTHERS.D in September as illustrated above is a new hope to expect BTC.D to decrease and Altcoin season can return. If investors trust this signal, then this is also a much better time to buy Altcoin than in the first quarter of the year.

What if the pattern that has been repeated so many times in the past no longer holds true next month? Perhaps, then, the market has entered a new state never seen before.

Also Read: 3 potential but "silent" Altcoins that can increase in price in October 2024

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