Bull Flag in Bitcoin Market Cap Dominance
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Quick update, without the normal comprehensive TA. What I think is most important right now is the Bitcoin Market Cap Dominance (BTC.D). This is my main indicator to identify alt seasons vs salt seasons. The best alt seasons happen when: BTC is in a bull market and market cap dominance is > 70%. Conversely when market cap dominance is less than 60% it is usually a good indicator to sell alts.
The target from the bull flag is 77%.
Furthermore I think this is a very strong confirmation of a bottom in Bitcoin. Throughout this bear market any time BTC has pumped, alts have pumped more. Now we are seeing BTC pump and alts sell off vs BTC. This is exactly what we saw at the beginning of the 2016 bull market. This combined with the EMA's starting to signal a reversal has me sitting up in my seat.
That being said I am not viewing this as an opportunity to buy BTC. We are at resistance and well overdue for a correction. Instead what I've been doing is shorting ETH:BTC and longing ETH:USD as a hedge. If BTC continues going up then alts should continue selling off vs BTC but not necessarily USD. If BTC goes down then alts should selloff across the board and I will exit my ETH:USD long. If all works out then I can use the ETH:BTC short to hedge BTC spot purchase(s) when it eventually corrects.
Hopefully that all makes sense, if not feel free to ask questions!
Click here for my Comprehensive Trading Strategy | Click here for my Comprehensive Trading Process | Click here to learn about the 2 BTC' to 20 BTC' Trading Challenge
Quick update, without the normal comprehensive TA. What I think is most important right now is the Bitcoin Market Cap Dominance (BTC.D). This is my main indicator to identify alt seasons vs salt seasons. The best alt seasons happen when: BTC is in a bull market and market cap dominance is > 70%. Conversely when market cap dominance is less than 60% it is usually a good indicator to sell alts.
The target from the bull flag is 77%.
Furthermore I think this is a very strong confirmation of a bottom in Bitcoin. Throughout this bear market any time BTC has pumped, alts have pumped more. Now we are seeing BTC pump and alts sell off vs BTC. This is exactly what we saw at the beginning of the 2016 bull market. This combined with the EMA's starting to signal a reversal has me sitting up in my seat.
That being said I am not viewing this as an opportunity to buy BTC. We are at resistance and well overdue for a correction. Instead what I've been doing is shorting ETH:BTC and longing ETH:USD as a hedge. If BTC continues going up then alts should continue selling off vs BTC but not necessarily USD. If BTC goes down then alts should selloff across the board and I will exit my ETH:USD long. If all works out then I can use the ETH:BTC short to hedge BTC spot purchase(s) when it eventually corrects.
Hopefully that all makes sense, if not feel free to ask questions!
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