BTC.Dominance and ALTSEASON OPPORTUNITY
☝🏻 The dominance of Bitcoin over the last 40 days has demonstrated a sideways-accumulation cycle that has not yet appeared in the graph. Despite the sideways structure, some BTC pairs were able to experience extreme up-trend movements and the overall atmosphere in the altcoins market was positive. The situation and sentiment have changed in the last 10 days and most altcoins are experiencing advanced corrections.
SobPersonally, I am always happy for the movement of UP dominance, because it opens up many opportunities to buy / buy running altcoins for both USDT and BTC pairs. The rebound towards UP occurred from the currently strongest support of 60.5-61%, which will be the benchmark for a potential altseason. In the event of a breakdown of this level, I expect a drop in dominance of up to 50%, which would result in a several-week uptrend cycle on altcoins.
✋🏻Personally, I will be very interested in tomorrow's 3D close, because the last candle closed over the strong and respected BK77 3D, which last happened more than a month ago. Although I have been observing a decline in dominance again in the last 2 days, I speculate on this movement only as a retest of a broken trend in convergence with a combination of 4H BKs. There is still plenty of time until tomorrow's close and in case of impulse movement on BTC, the 3D candle can close over BK77, thus confirming it as support and I will expect the UP movement to continue to the zone 64.15-65.1%, where I will watch re-entries into altcoins.
👍🏻 Otherwise, a typical sideways-declining trend along the trendline may occur again in the dominance, back to the zone of strong support, where we will monitor the reaction to the determination of the middle-term setup on BTC.D. In this case, we will definitely follow short-term setups on USDT and BTC pairs, which can continue in the green for a few days. Many altcoins also broke down strong support zones and High Time Frames BKs downwards, so continuing the correction would make more sense. This would, of course, allow us to pick up decent purchase prices and give us the opportunity to be better prepared for another downturn.
4H graph:
3D graph:
SobPersonally, I am always happy for the movement of UP dominance, because it opens up many opportunities to buy / buy running altcoins for both USDT and BTC pairs. The rebound towards UP occurred from the currently strongest support of 60.5-61%, which will be the benchmark for a potential altseason. In the event of a breakdown of this level, I expect a drop in dominance of up to 50%, which would result in a several-week uptrend cycle on altcoins.
✋🏻Personally, I will be very interested in tomorrow's 3D close, because the last candle closed over the strong and respected BK77 3D, which last happened more than a month ago. Although I have been observing a decline in dominance again in the last 2 days, I speculate on this movement only as a retest of a broken trend in convergence with a combination of 4H BKs. There is still plenty of time until tomorrow's close and in case of impulse movement on BTC, the 3D candle can close over BK77, thus confirming it as support and I will expect the UP movement to continue to the zone 64.15-65.1%, where I will watch re-entries into altcoins.
👍🏻 Otherwise, a typical sideways-declining trend along the trendline may occur again in the dominance, back to the zone of strong support, where we will monitor the reaction to the determination of the middle-term setup on BTC.D. In this case, we will definitely follow short-term setups on USDT and BTC pairs, which can continue in the green for a few days. Many altcoins also broke down strong support zones and High Time Frames BKs downwards, so continuing the correction would make more sense. This would, of course, allow us to pick up decent purchase prices and give us the opportunity to be better prepared for another downturn.
4H graph: