I have always believed that a significant indicator of what’s next to come can be found in patterns within % share of market cap. Here you will see that since the start of the year (when institutional investment caused a significant spike in overall cryptocurrency market cap), an interesting pattern seems to be taking form specific to Bitcoin’s overall % share of market cap. Every ~50% decline in BTC % of total market cap is followed by a ~50% run up in same metric with respect to BTC.
From a cryptocurrency market capitalization perspective, this translates into something interesting (albeit speculative). Once we approach the 50% line (sell off), the market tends to drive upward due to investment in many of the more speculative alts at their newly discounted prices. Bitcoin market cap therefore dives with respect to total market cap and we have a season of alt-coin break out.
I will continue testing this theory as time goes one and I can collect more data points.