Everyone has been laughing their asses off on the alts for the past few weeks. Metaverses are exploding all over the place, DeFi just hit 250 billion TVL, people are getting rugged because they watch Netflix too much…Seriously, with crypto we’re laughing all day long.

But in real life, there is a time for everything. And maybe it’s time to get serious again. In the crypto universe, Bitcoin has always served as a metronome for the market. It’s BTC that benefits first from massive inflows of capital before it spills over into alts. Because basically, it’s the most robust crypto, and the most fashionable among the Smart Money.

Today, there are many hints about a possible return of BTC to the big stage. But to keep it short, I’m going to present four of them :

1) BTC Dominance Divergence

Dominance is the capitalization of a crypto out of all in existence. In our case, BTC represents 42% of the total capitalization of cryptocurrencies. What is interesting is that technical analysis works very well on this graph. Most of the up and down signals have been validated on the dominance.

In this case, we are starting to see a bullish divergence on the RSI with a stagnant dominance. At the same time, we are in a zone within which it’s very difficult to fall further.
In other words, from a technical point of view, we can estimate that the dominance is getting ready to go up for the next few months.

2) The arrival of Taproot

Taproot is an update to the Bitcoin network that was validated a few months ago, whose validation can be found on block number 709,632. This is a momentous event for Bitcoin in the same way as the Segwit update in 2017.

Source : https://taproot.watch

If what is happening on social networks is to be believed, the majority looks to make a quick fortune on alts. But insiders are already anticipating Taproot’s arrival.

3) Google Trends

Google Trends is a frighteningly powerful tool for estimating market interest in given domains, and free of charge at that !

Google search volume for “Crypto” and “Bitcoin” in the world over the last 12 months

For cryptocurrencies in general, we can see that we are reaching levels equivalent to April-May 2021, that famous period of absolute euphoria in this sector where the slightest token launch could attract several million dollars.

That said, for Bitcoin, we are at the same stage as the end of 2020. At that time, we were matching the historical highs of the time, but the internet was not yet taking BTC seriously. By the next quarter, it has gone fireworks. Today, that scenario seems to be repeating itself.

4) Glassnode

This glassnode graph below represents the transaction fees charged on the Bitcoin network in orange, as a function of the price in BTC on a black curve. 2 observations emanate from this :

• The lowest values are found during bear market or disbelief phases
• The highest values are reached when the BTC price has just made an important valuation

⇒ If we stick to the graph, we are in a phase comparable to the bear market, i.e. investors doubt the fundamentals of BTC and/or are afraid to go in. According to market psychology, this is one of the best times to take action.

There are still other warning signs foreshadowing BTC coming back (for good or bad), but despite my presentation and the number of signals that show a Bitcoin-season, there’s still a probability that it won’t happen.

In any case, I personally lightened up on my own altcoins for obvious reasons:

• BTC benefits most from capital inflows and institutional investors
• If BTC makes a big move (in any direction), altcoins take a hit

Finally, a simple open-ended question : What will you do if BTC does x3 before your favorite alts ?

Thanks for reading all the way through,

Stengarl