EW Analysis: Support On BTC.Dominance May Slow Down ALTcoins
Hello traders!
Today we will talk about BTC and its dominance from technical point of view and from Elliott Wave perspective.
BTC.Dominance has quite clear five-wave impulse from January 2018 lows to September 2019 highs. Since September 2019, we can see mostly sideways price action, which we see it as a corrective structure. It's an A-B-C irregular or expanded flat correction that can be approaching the end soon, as we see it coming into strong technical support around previous wave 4 swing low and 50 level. So, we have to be aware of bounce and recovery soon, at least for a short period of time.
There are two different interpretioans what may happen when BTC.Dominance bounces. Either we will see BTC extension even higher, while ALTcoins could slowly follow or we will see a big sell-off into higher degree corrections in the Crypto market, where BTC may lose less than ALTcoins.
Well, looking at where BTC and ALTcoins are (in our opinion finishing 5th or 3rd waves), then we would not be surprised if Crypto market is ready for deeper corrections, which means that ALTs may lose more than BTC in a potential upcoming sell-off.
If you like what we do, then please like and share our idea.
Be humble and trade smart!
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
Today we will talk about BTC and its dominance from technical point of view and from Elliott Wave perspective.
BTC.Dominance has quite clear five-wave impulse from January 2018 lows to September 2019 highs. Since September 2019, we can see mostly sideways price action, which we see it as a corrective structure. It's an A-B-C irregular or expanded flat correction that can be approaching the end soon, as we see it coming into strong technical support around previous wave 4 swing low and 50 level. So, we have to be aware of bounce and recovery soon, at least for a short period of time.
There are two different interpretioans what may happen when BTC.Dominance bounces. Either we will see BTC extension even higher, while ALTcoins could slowly follow or we will see a big sell-off into higher degree corrections in the Crypto market, where BTC may lose less than ALTcoins.
Well, looking at where BTC and ALTcoins are (in our opinion finishing 5th or 3rd waves), then we would not be surprised if Crypto market is ready for deeper corrections, which means that ALTs may lose more than BTC in a potential upcoming sell-off.
If you like what we do, then please like and share our idea.
Be humble and trade smart!
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
