Bitcoin Dominance Rising Wedge Breaks: Initial Targets
The Bitcoin Dominance Rising Wedge has begun to break.
Ethereum and XRP are beginning to be the bigger breakouts. Given they hold larger marketshare %s versus recent breakout cryptos like ZEC and DASH, they will take more dominance away from Bitcoin . Remember, Bitcoin can continue to increase or trade sideways in price, and its dominance can still fall. All that has to happen to accomplish this is that altcoins have to outpace bitcoin (on a weighted average % based on market cap) in % gain.
I have 2 initial targets drawn, after which we can revisit:
Target 1: Key Fib level of 0.618
Target 2: Psychological level of 50% dominance which also happens to correspond with 0.382 Fib level
Ethereum and XRP are beginning to be the bigger breakouts. Given they hold larger marketshare %s versus recent breakout cryptos like ZEC and DASH, they will take more dominance away from Bitcoin . Remember, Bitcoin can continue to increase or trade sideways in price, and its dominance can still fall. All that has to happen to accomplish this is that altcoins have to outpace bitcoin (on a weighted average % based on market cap) in % gain.
I have 2 initial targets drawn, after which we can revisit:
Target 1: Key Fib level of 0.618
Target 2: Psychological level of 50% dominance which also happens to correspond with 0.382 Fib level
Comment:
Getting closer to Target 1: Weekly candle is below the 50-Day SMA (purple line) for the first time in the entire uptrend once we broke above
Comment:
The golden circle shows a break below our purple 50-week SMA
I anticipate that we will continue to move lower, initially towards Target 1, then Target 2, then finally to all-time lows many months out when we enter a euphoric alt-season.
Remember, we can continue moves up in Bitcoin while it simultaneously has declining dominance in the broader crypto market. This simply implies that the altcoin market in total is outpacing returns relative to bitcoin
I anticipate that we will continue to move lower, initially towards Target 1, then Target 2, then finally to all-time lows many months out when we enter a euphoric alt-season.
Remember, we can continue moves up in Bitcoin while it simultaneously has declining dominance in the broader crypto market. This simply implies that the altcoin market in total is outpacing returns relative to bitcoin
Comment:
My initial rising wedge pattern did not play out
What I am currently seeing is bullish price action in bitcoin dominance with top-out targets between the 74%-79%. However, for that to happen we would need to first break our downward sloping black trend line shown below.
So either we will top out at our downward trend line, or break convincingly above it and top-out at 74%-79%. I am in the camp that will see us break the trend line and hit 74%-79%
What I am currently seeing is bullish price action in bitcoin dominance with top-out targets between the 74%-79%. However, for that to happen we would need to first break our downward sloping black trend line shown below.
So either we will top out at our downward trend line, or break convincingly above it and top-out at 74%-79%. I am in the camp that will see us break the trend line and hit 74%-79%
Comment:
First main stop I am looking for is the 0.618 fib retrace at 50%
Alts be running!
First main stop I am looking for is the 0.618 fib retrace at 50%
Alts be running!
Comment:
Inverted view shows an ascending triangle; bullish formation that has a higher likelihood of breaking up, which in this case is down. Thus, shit's gonna get real for altcoins very soon
Inverted view shows an ascending triangle; bullish formation that has a higher likelihood of breaking up, which in this case is down. Thus, shit's gonna get real for altcoins very soon
Comment:
While we could wick higher, we look like we could see a top in bitcoin dominance within that green circle; implying ~66%-68%. So what does this imply?
Well, a top suggest it will move down after the top is reached. That implies altcoin dominance will rise; altcoin prices will appreciate in value greater than bitcoin value. The real question is will this be a mini altcoin move, or the start of a larger move the entire crypto market has been anticipating.
While we could wick higher, we look like we could see a top in bitcoin dominance within that green circle; implying ~66%-68%. So what does this imply?
Well, a top suggest it will move down after the top is reached. That implies altcoin dominance will rise; altcoin prices will appreciate in value greater than bitcoin value. The real question is will this be a mini altcoin move, or the start of a larger move the entire crypto market has been anticipating.
Comment:
Right in the zone
Have we topped?
Right in the zone
Have we topped?
Comment:
We appear to be topping exactly in the range I expected: I expected a possible wick to ~68%
If we have or are about to top, between this chart and the BTCUSD price level, we may be about to enter a massive cyclical rotation into alts, otherwise known as altseason #1
If we have or are about to top, between this chart and the BTCUSD price level, we may be about to enter a massive cyclical rotation into alts, otherwise known as altseason #1