Time to be careful. On the 1-day chart above BTC.D (D for dominance) is indicated as overbought (green column). Stochastic RSI is at 99.43!! (Out of 100) that is clearly bonkers. Money Flow Index (MF) is at 100.8 (how is that possible?!). Looking left MFI has never been here before for all of the BTC dominance history.
Can BTC dominance continue to increase? Absolutely.
Is it probable? Very unlikely.
Trade active
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Watch closely - BTC.D is showing increasing signs of reversal. IF today's candle closes as below, a Gravestone DOJI, a surge in the alt-coin market can be expected in the days / week ahead.
Trade closed manually
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Reversal seems increasingly likely, shooting star candle is printed, ideally today must close bearish also to fully confirm.
If history repeats a 7-10% pullback should be observed. During that time in November Alt-coins performed very well.
Comment
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Large bearish engulfing candle on the 1-day together with bearish divergence between price action and the oscillators.
Trade closed manually
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Correction over - consolidation period now follows.
This what I was talking about in the chat few hours ago. BTC is heavily overbought more so than in 2017. I can imagine in the very unlikely scenario that this state could extend for another week but that is unlikely. Feels like fomo buying and smart money leaving, this is not sustainable without consolidation.
I mean, one just needs to look at one indicator really - TD sequential. Just look how overbought it is and look at 2017. This is not normal.
Loaded in alts lets see what happens. Woke up today to a bunch of red and a 2 percent increase in dom over night. Dont think this even happened in 2017
without_worries
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@mmiller4255, I'm on the same boat - loaded up on alts. You're correct, looking left all the way back to 2017 we saw nothing like this. Around the same time in December 2016 BTC Dominance dropped 2% overnight (circled in black) - looks like nothing huh? On that exact same time the alt-coin market capital double in size overnight.
2% drop in BTC dominance December 2016
The alt-coin market capital during the same period:
without_worries
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@mmiller4255, Should also add - the rotation into Alts from here will be like nothing we've seen before. Be patient.
DukeDinhd6
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@without_worries, you'll see alt coin market cap double in January
DukeDinhd6
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manipulation
vishweshwaran26
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Monero has decoupled excellently. Situation is very similar to 2016 when Monero went from $2 to $16 ahead of even DASH. Monero is yet to peak. Once it consolidates, after a week or two, DASH may fly. Expecting 72%to 77% of BTC dominance easily.
vishweshwaran26
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@vishweshwaran26, Sad that the decoupling is only partial. It's the only crypto which has exceeded BTC since March 2020 carnage. :)
I mean, one just needs to look at one indicator really - TD sequential. Just look how overbought it is and look at 2017. This is not normal.