Bitcoin Dominance Breakouts - Analysis and Current situation
Hello all, I have tried to analyze the breakouts of bitcoin dominance. This is the chart,
1. The blue waveform shows bitcoin dominance
2. The orange waveform shows the bitcoin price
3. The red trendlines show some of the breakouts
4. The red dotted lines at the end of the chart show the potential breakouts.
5. The green vertical lines show the point in time when these breakouts occurred.
My conclusion is that when these breakouts occur we do have an increase in the price of bitcoin. The previous days I was a bit cautious and worried about BTC due to the current economic news, but there is also one more factor that influences the price of the coin and this is the supply apart from the macroeconomic decisions. The supply of bitcoins is limited and it is becoming less and less by day as big institutions are absorbing it. I would have expected a bigger drop in BTC than the current one but even if there are one or more declines in it I would be very hesitant to sell it. The falls' purpose would be to take the coins from weak hands. The two red dotted lines that represent the potential breakouts are approaching. Currently fear and greed index is at an extreme fear level, which is the best time to buy BTC downwards, I would not be very ambitious with it because someone else might take it before you. Currently, it may be trading at a good discount. I would appreciate your feedback on my analysis to improve it.
1. The blue waveform shows bitcoin dominance
2. The orange waveform shows the bitcoin price
3. The red trendlines show some of the breakouts
4. The red dotted lines at the end of the chart show the potential breakouts.
5. The green vertical lines show the point in time when these breakouts occurred.
My conclusion is that when these breakouts occur we do have an increase in the price of bitcoin. The previous days I was a bit cautious and worried about BTC due to the current economic news, but there is also one more factor that influences the price of the coin and this is the supply apart from the macroeconomic decisions. The supply of bitcoins is limited and it is becoming less and less by day as big institutions are absorbing it. I would have expected a bigger drop in BTC than the current one but even if there are one or more declines in it I would be very hesitant to sell it. The falls' purpose would be to take the coins from weak hands. The two red dotted lines that represent the potential breakouts are approaching. Currently fear and greed index is at an extreme fear level, which is the best time to buy BTC downwards, I would not be very ambitious with it because someone else might take it before you. Currently, it may be trading at a good discount. I would appreciate your feedback on my analysis to improve it.
Comment:
The 3rd green vertical line is drawn wrong and also the is one more breakout there, but I think you can get that. I was unable to edit the chart after I published the idead