Yesterday I said the bitcoin dominance is approaching a very important resistance zone which could lead to possible consolidation phase or rejection and a breakout is also possible.
Well, the update is that there is currently a hidden bearish divergence on the chart.
As you can see the RSI made a higher high but the dominance chart made a lower high.
What does this mean?
It means that we can get a consolidation or reversal back down which is good for the alt-coins because it will give the alt-coin a chance to go higher too just like we have been seeing since yesterday.
Note that if the price of bitcoin should get a little reversal back down it will also affect the the alt-coins but that doesn’t mean that they won’t pull back up. So as long as the bitcoin dominance remain bellow 48 we should start seeing majority of the alt-coin perform well again bitcoin.
Well, the update is that there is currently a hidden bearish divergence on the chart.
As you can see the RSI made a higher high but the dominance chart made a lower high.
What does this mean?
It means that we can get a consolidation or reversal back down which is good for the alt-coins because it will give the alt-coin a chance to go higher too just like we have been seeing since yesterday.
Note that if the price of bitcoin should get a little reversal back down it will also affect the the alt-coins but that doesn’t mean that they won’t pull back up. So as long as the bitcoin dominance remain bellow 48 we should start seeing majority of the alt-coin perform well again bitcoin.