Following up with my previous BTC analysis, BTC dominance is also at a crucial point.
Firstly, when looking at the left graph, we see that over the course of the year we've seen BTC.D trend downwards, making lower highs and lower lows, closely following the red trendline. However, when BTC made its run to 40k, we broke above the trend line, and are currently facing a retest of the red trendline. If we break below, I do expect alt season to be in full force (provided BTC is at a healthier price level).
Unfortunately, when looking at the right graph, we do see a bullish divergence of the 6 hour time frame. Although BTC.D is going down, RSI appears to be going up, suggesting that it's a possibility we may not break below the trend line and we are not in alt season yet. Given BTC's weak price level, I am still not confident in an alt season yet, but we will still need to see as anything is possible in crypto.i
Firstly, when looking at the left graph, we see that over the course of the year we've seen BTC.D trend downwards, making lower highs and lower lows, closely following the red trendline. However, when BTC made its run to 40k, we broke above the trend line, and are currently facing a retest of the red trendline. If we break below, I do expect alt season to be in full force (provided BTC is at a healthier price level).
Unfortunately, when looking at the right graph, we do see a bullish divergence of the 6 hour time frame. Although BTC.D is going down, RSI appears to be going up, suggesting that it's a possibility we may not break below the trend line and we are not in alt season yet. Given BTC's weak price level, I am still not confident in an alt season yet, but we will still need to see as anything is possible in crypto.i
Comment:
My analysis was wrong, we did break below the red long term trendline! Looking to retest that trendline soon and probably head even lower. Given BTC's current price movements, I believe alt season is highly likely.