The state of the cryptocurrency market
Today we are looking at the bitcoin dominance chart. This chart is essential for every cryptocurrency trader. It tells us what percentage of the total cryptocurrency market is invested in bitcoin. By analysing this chart we can unravel the sentiment of bitcoin compared to the altcoins.
Looking at the chart we can see that the bitcoin dominance has found support at the 60% level and the lower trendline of a larger triangle that was found on the weekly timeframe. Resistance is being challenged at the 63% level and the 200MA. Long wicks are showing up on both sides. It’s clear what’s going on here. Investors are being indecisive about the direction in which the dominance of bitcoin should go. This declares the extreme volatility we have been witnessing lately throughout the entire market. Two possible scenarios can be drawn from here.
Either the bitcoin bulls manage to push their dominance past the 63% resistance level and the altcoins market will become bearish again on the short term or the 60% support level breaks down pushing the dominance out of the supporting triangle and we will see an altseason like never before.
These times of market indecision can be very dangerous to trade. When you don’t want to expose yourself to the heavily volatile market the best thing to do is to wait patiently untill the market chooses it’s next direction for you.
Goodluck.
Looking at the chart we can see that the bitcoin dominance has found support at the 60% level and the lower trendline of a larger triangle that was found on the weekly timeframe. Resistance is being challenged at the 63% level and the 200MA. Long wicks are showing up on both sides. It’s clear what’s going on here. Investors are being indecisive about the direction in which the dominance of bitcoin should go. This declares the extreme volatility we have been witnessing lately throughout the entire market. Two possible scenarios can be drawn from here.
Either the bitcoin bulls manage to push their dominance past the 63% resistance level and the altcoins market will become bearish again on the short term or the 60% support level breaks down pushing the dominance out of the supporting triangle and we will see an altseason like never before.
These times of market indecision can be very dangerous to trade. When you don’t want to expose yourself to the heavily volatile market the best thing to do is to wait patiently untill the market chooses it’s next direction for you.
Goodluck.