Hi traders!
Today, we are explaining a special chart - bitcoin dominance. Let's deep dive! Bitcoin dominance is in percentage. It represents the number of percentage of total capital currently allocated in bitcoin. Depending on its growing or falling trend, we can determine the correlation of altcoins.
Let's examine possible cases. If both bitcoin dominance and markets grow, it means bitcoin grows the most and altcoins less. If bitcoin dominance falls and markets grow, it means bitcoin grows less compared to altcoins. By contrast, if bitcoin dominance grows and markets fall then bitcoin falls less than altcoins and vice-versa. It's simply not enough to know whether markets fall or grow, but we also need to know the inter correlation and that's what bitcoin dominance tells us.
On the daily graph we can see bitcoin dominance is very bullish. That answers why only bitcoin has recently gained, which grew more rapidly than other coins. Despite smaller corrections, the growth should come to an end at higher valuations. Now there's still room for growth. That can be also caused by halving. Bitcoin began at 50,55% dominance and we are now attacking 70%. That said, as much as 70% of all crypto funds is in bitcoin.
On the chart we are expecting the last upwards wave and then stronger correction should follow. RSI keeps very high levels too. Bitcoin dominance will continue to grow for a while but we are slowly nearing the finish line. One or two months to go.
May the crypto be with you!
Today, we are explaining a special chart - bitcoin dominance. Let's deep dive! Bitcoin dominance is in percentage. It represents the number of percentage of total capital currently allocated in bitcoin. Depending on its growing or falling trend, we can determine the correlation of altcoins.
Let's examine possible cases. If both bitcoin dominance and markets grow, it means bitcoin grows the most and altcoins less. If bitcoin dominance falls and markets grow, it means bitcoin grows less compared to altcoins. By contrast, if bitcoin dominance grows and markets fall then bitcoin falls less than altcoins and vice-versa. It's simply not enough to know whether markets fall or grow, but we also need to know the inter correlation and that's what bitcoin dominance tells us.
On the daily graph we can see bitcoin dominance is very bullish. That answers why only bitcoin has recently gained, which grew more rapidly than other coins. Despite smaller corrections, the growth should come to an end at higher valuations. Now there's still room for growth. That can be also caused by halving. Bitcoin began at 50,55% dominance and we are now attacking 70%. That said, as much as 70% of all crypto funds is in bitcoin.
On the chart we are expecting the last upwards wave and then stronger correction should follow. RSI keeps very high levels too. Bitcoin dominance will continue to grow for a while but we are slowly nearing the finish line. One or two months to go.
May the crypto be with you!