Bitcoin Dominance: A Short Story
Hello everyone! As we can see, the market cap percentage of bitcoin is now below our last vestige of a weak support zone. We received a minor bounce attempt on April 30th, however it wound up being weaker than I had anticipated. I will now lay out a couple of ideas on what could happen next.
Any kind of upward movement from bitcoin is now clearly outpaced by ethereum and the rest of the market. It is currently treading water as many coins consolidate upwards. The next 10-50x alt coin 'explosion' is right around the corner, however there is one short-term move bitcoin has in its arsenal to regain market share that everyone should be cautious of happening.
During periods of growth and consolidation by BTC, the rest of the market may do as well or even better from a percentage basis. However, the opposite also holds true.
During periods of contraction most of these other coins will drop more than bitcoin.
What this means is that if bitcoin were to start dropping very quickly again, it would create a temporary bounce of market dominance. This is evidenced by the strong wicks to the upside in dominance on April 18th and April 23rd. Both of these days bitcoin had massive drops - during which time its dominance actually spiked - before falling again by the end of the day, as capital was reallocated back into crypto through other coins.
This is my idea for the day. I am currently waiting outside of this market in case something like this were to play out over the next week or so, with the possibility of entering into a short-term swing trade if bitcoin bounces at a key pivot point of roughly 54.5k.
Stay safe guys and remember to always protect your capital!
Any kind of upward movement from bitcoin is now clearly outpaced by ethereum and the rest of the market. It is currently treading water as many coins consolidate upwards. The next 10-50x alt coin 'explosion' is right around the corner, however there is one short-term move bitcoin has in its arsenal to regain market share that everyone should be cautious of happening.
During periods of growth and consolidation by BTC, the rest of the market may do as well or even better from a percentage basis. However, the opposite also holds true.
During periods of contraction most of these other coins will drop more than bitcoin.
What this means is that if bitcoin were to start dropping very quickly again, it would create a temporary bounce of market dominance. This is evidenced by the strong wicks to the upside in dominance on April 18th and April 23rd. Both of these days bitcoin had massive drops - during which time its dominance actually spiked - before falling again by the end of the day, as capital was reallocated back into crypto through other coins.
This is my idea for the day. I am currently waiting outside of this market in case something like this were to play out over the next week or so, with the possibility of entering into a short-term swing trade if bitcoin bounces at a key pivot point of roughly 54.5k.
Stay safe guys and remember to always protect your capital!
I have read people's ideas about the inverse head-and-shoulders theory of bitcoin currently forming, and I am open to the idea that we could see one more move to the upside while still forming a lower high before falling. I will not be looking to enter unless we get a drop to the descending slope line connecting the 4-hour closes from April 19th through April 28th. That to me is the most likely reversal point if we are to see one, and if BTC reaches that zone I will punt a long on Dogecoin and ride that up until BTC reaches roughly 60k, at which point I will exit the market again.