📈 Bitcoin Dominance Major Drop Ahead

We have a large combination of major signals on the Bitcoin Dominance index chart.

Let's look at these one by one, together...
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Bitcoin Dominance Turns Bearish

When engaging in technical analysis, we always focus on a mixture of systems, we do the same across all professions. We take the best of each method and combine it to get the best possible in this world...

So we start with candlestick reading, the first signal, very strong even when considered on its own.

➖ On the 4th of December 2023 we have a shooting star. This signal can show up at the top of a trend.

We can see the highest reading since April 2021, 2.5 years.
The next signal confirms this one as the top of a bullish wave.

➖ This is followed by the bearish engulfing pattern. This pattern includes two sessions, 1-Jan and 8-Jan.

The week 8-Jan takes the full space of the previous week. It wicks higher and the real body is bigger on both the open and close.

➖ The bearish session 8-Jan pushes the index below EMA10, has the highest bear volume since November 2022 and is also a lower high compared to the shooting star. All these signals add further strength to the previous two while at the same time can be considered on their own.

This is a total of five strong bearish signals working together.

The current price action is happening below EMA10, a small bounce and minor development that does not alter the bearish potential.

➖ The Head & Shoulders pattern is a top formation.

When this signal shows up it can signal that the top is in.

➖ The Renko chart is showing a clear top pattern and the action moved below EMA10 and EMA21; Multiple bearish signals combined.

➖ Broken uptrend/ascending channel.

Market conditions can always change, but after 455 days of sustained growth, I wouldn't be surprise to see a correction show up.

A drop can take the index first to 49% to test EMA50 (0.382 Fib.) and even lower to 47%, 45% and even 43...

This is a wait and see, because this index tends to behave strangely and doesn't necessarily moves with Bitcoin but when it goes bearish the Altcoins value tends to increase.

Namaste.