REASONING ON BTC DOMINANCE - WHY THE DROP MAY BE OVER
This particular Dominance maeasure, adjusted by stablecoins, show that the down trend may have reverted.
1- we are bouncing on the 50MA
2- the fibo extension target of the last upmove is within the fibo retracement area of the last big downmove. Both are at the 200MA level
But what does this mean? Technically, dominance increases when BTC drops right? So, if the conclusion is correct, we should see some drop in BTC?
Not always. Depends on the moment.
Indeed, BTC can increase also in case of a big run of BTC, leaving all other alts behind. This was very unlikely at 60k as a big run had already been made, but it is much more feasible now at 35k.
Chart have to be read and interpreted, conclusion do not have to be taken blindly. Indeed, paradoxically, the dominance DECREASED today with BTC at -4% currently. It is due by ETH +7% vs BTC performance. ETH, with its 20% market share, has a key role in the Dominance chart.
Also, to be fair, if we just look at the original BTC.D chart (not this adjusted version), the last red candle signals a false breakout of the 50MA AT THE MOMENT. Let's keep this monitored.
1- we are bouncing on the 50MA
2- the fibo extension target of the last upmove is within the fibo retracement area of the last big downmove. Both are at the 200MA level
But what does this mean? Technically, dominance increases when BTC drops right? So, if the conclusion is correct, we should see some drop in BTC?
Not always. Depends on the moment.
Indeed, BTC can increase also in case of a big run of BTC, leaving all other alts behind. This was very unlikely at 60k as a big run had already been made, but it is much more feasible now at 35k.
Chart have to be read and interpreted, conclusion do not have to be taken blindly. Indeed, paradoxically, the dominance DECREASED today with BTC at -4% currently. It is due by ETH +7% vs BTC performance. ETH, with its 20% market share, has a key role in the Dominance chart.
Also, to be fair, if we just look at the original BTC.D chart (not this adjusted version), the last red candle signals a false breakout of the 50MA AT THE MOMENT. Let's keep this monitored.
Are you a good trader but you lack the capital?
Or simply you don't want to risk it?
Trade forex, oil, crypto, indices, and keep 80% of the profits you make, while losses are covered!
Check it out now → ftmo.com/en/?affiliates=2427
Or simply you don't want to risk it?
Trade forex, oil, crypto, indices, and keep 80% of the profits you make, while losses are covered!
Check it out now → ftmo.com/en/?affiliates=2427