BTC Dominance Resistance
The over extended RSI combined with the parallel channel resistance suggest BTC dominance would likely turn to the downside as it has done in the past. I estimated the downturn to be 7 - 12% at least but its done more damage in the past declines. I also think there is a possibility that BTC dominance could surge with a BTC price surge into the red dashed line of long term resistance and get rejected here with that 7 - 12% pull back to the 50 MA. I have included arrows with these scenarios. These are small moves i know but if you are trading alts or BTC these trigger points could help flip from one to the other, or at least help indicate alts are gaining steam.
If we got an alt seasons or it eth took a run here we could see the BTC dominance take a hit. Recognize a decline in BTC dominance does not necessarily mean the price of BTC will decline, it could just mean that Ethereum or other alts are out performing its price action temporarily. I actually think BTC looks very strong at the moment, and as a long term holder I'm not toying with my position.
Its a very simple chart that offers perspective in the BTC/ALT dynamic. I actually did share elsewhere with a little blue birdie before we got that weekly falling star. I only mention this so you know this isn't a reaction to that falling star. I had predicted a pullback before we got it.
I hope this chart can help you with your positioning in the crypto market in the near term. It should not be used in isolation but as more as a tool to help derive what direction the general wind is blowing in for alts and BTC.
Happy Trading Folks, have a great weekend
PUKA
The over extended RSI combined with the parallel channel resistance suggest BTC dominance would likely turn to the downside as it has done in the past. I estimated the downturn to be 7 - 12% at least but its done more damage in the past declines. I also think there is a possibility that BTC dominance could surge with a BTC price surge into the red dashed line of long term resistance and get rejected here with that 7 - 12% pull back to the 50 MA. I have included arrows with these scenarios. These are small moves i know but if you are trading alts or BTC these trigger points could help flip from one to the other, or at least help indicate alts are gaining steam.
If we got an alt seasons or it eth took a run here we could see the BTC dominance take a hit. Recognize a decline in BTC dominance does not necessarily mean the price of BTC will decline, it could just mean that Ethereum or other alts are out performing its price action temporarily. I actually think BTC looks very strong at the moment, and as a long term holder I'm not toying with my position.
Its a very simple chart that offers perspective in the BTC/ALT dynamic. I actually did share elsewhere with a little blue birdie before we got that weekly falling star. I only mention this so you know this isn't a reaction to that falling star. I had predicted a pullback before we got it.
I hope this chart can help you with your positioning in the crypto market in the near term. It should not be used in isolation but as more as a tool to help derive what direction the general wind is blowing in for alts and BTC.
Happy Trading Folks, have a great weekend
PUKA
Comment:
For some reason my chart mark up is only showing on phone and now when i look at it on PC. If you want to see the mark up please open this on your phone. Not sure whats happened here.
Comment:
The rejection i projected of BTC dominance has played out nicely with ETH and Alts performing well as a result. We are currently 4 - 5% down from when i originally posted. It is possible for a 9 - 12% pullback.
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