BTC Dominance Appears Set To Increase Against Alts!
Now that we can see BTC is potentially re-entering a bull market, I really want to assess the dominance to understand what its performance could be like compared to the alt space. As you can see, BTC dominance has entered what appears to be a HUGE trading range, with the topside resistance around 74% dominance, and the bottom support around 40% dominance. What we can see here, is that BTC appears to be rallying off of the bottom support level, as dominance this week alone is up a staggering 7.25%! Also, BTC dominance remains under a weekly bullish reversal signal, after finding apparent support around the 40% level. So, this basic overview of the dominance chart suggests that we could see a continuation of BTC dominance in the coming weeks, as BTC dominance could presumably head up into the midline area round 54%, where some substantial dominance resistance exists.
Another thing I would like to point out, is that the last time BTC dominance tested the bottom of that range (2018) we can see that a W bottom was printed. BTC dominance appears to be printing another W bottom here, just as it did in 2018. While I'm not saying this indicates a massive dominance recovery, it does suggest that we could see a dominance recovery back into the mid 50% level. With that said, BTC could have the edge on alts here, if a bull market continuation is sustained. I am cautiously optimistic that BTC is recovering in a more meaningful way than I expected. I am siding more with the bulls here, with tight stops on long trades to protect against a potential failed recovery.
On the bearish side, there is a hidden bearish divergence on the RSI, but that could be eradicated if BTC dominance continues to rise before topping out on the current rally.
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
Another thing I would like to point out, is that the last time BTC dominance tested the bottom of that range (2018) we can see that a W bottom was printed. BTC dominance appears to be printing another W bottom here, just as it did in 2018. While I'm not saying this indicates a massive dominance recovery, it does suggest that we could see a dominance recovery back into the mid 50% level. With that said, BTC could have the edge on alts here, if a bull market continuation is sustained. I am cautiously optimistic that BTC is recovering in a more meaningful way than I expected. I am siding more with the bulls here, with tight stops on long trades to protect against a potential failed recovery.
On the bearish side, there is a hidden bearish divergence on the RSI, but that could be eradicated if BTC dominance continues to rise before topping out on the current rally.
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-