BTCUSD on a weekly chart showing 3 reasons why it could have bottomed out.
1. Heavy volume capitulation often indicating bottom is near.
2. RSI Bullish Divergence
3. BTC declining while Stablecoin dominance is also declining. (see notes below)
The stablecoin dominance below shown as (USDC.D+USDT.D) generally moves in
opposite direction to BTCUSD. When stablecoins are flowing into BTC, dominance
naturally declines and vice-verca.
So notice stablecoin dominance has formed a lower high, while BTCUSD has made
a lower low. So this is an anomaly that doesn't normally occur, so expecting a reversal.
Weekly candle will close on the 21 Novemenber 2022. If it closes Bullish and Dominance
candle closes bearish, setup is confirmed.
What do you guys reckon?
1. Heavy volume capitulation often indicating bottom is near.
2. RSI Bullish Divergence
3. BTC declining while Stablecoin dominance is also declining. (see notes below)
The stablecoin dominance below shown as (USDC.D+USDT.D) generally moves in
opposite direction to BTCUSD. When stablecoins are flowing into BTC, dominance
naturally declines and vice-verca.
So notice stablecoin dominance has formed a lower high, while BTCUSD has made
a lower low. So this is an anomaly that doesn't normally occur, so expecting a reversal.
Weekly candle will close on the 21 Novemenber 2022. If it closes Bullish and Dominance
candle closes bearish, setup is confirmed.
What do you guys reckon?