Bitcoin Market Sentiment & Double DC Strategy

In today's idea I will share a daily strategy and analysis for Bitcoin and see how Nasdaq is correlated to Bitcoin and why you should hold ETH or altcoins.

Bitcoin Analysis & Strategy

The analysis says that we are still bearish in daily, although price and the RSI have been making higher lows in the past month. It looks like more people are getting in, and price is consolidating.
My strategy wants a break above the 45837.5 USDT line in order to be considered bullish. This level will be valid for another 20 days, after what it will be lowered to the month's highest price.


The strategy is based on a Double Donchian Channels with a length of 32 bars. It will buy when price breaks above the upper channel and sell at price breaking below second lower channel, which is half the length of the first one.
I first published this strategy on november 2019 and it still shows an amazing backtest result as you can see below, even beating buy & hold over the backtest period (1646 days).

The indicator is free and has alerts:

Bitcoin & Nasdaq correlation

Currently the stock market is not doing well and it is affecting the crypto market, especially Bitcoin.
We can see that over the history, Bitcoin has been following the Nasdaq, as if stock investors are also investing in Bitcoin.
Typically yesterday, on the 17th, the Nasdaq dropped 2.5%, leading to a 8% BTC drop.


Crypto Market Cap

The Bitcoin dominance (top chart) is currently inside a descending channel, meaning money is flowing out of Bitcoin into altcoins.
The bottom chart shows that the Altcoin dominance is in an ascending trend since 2016, and is currently touching support.


ETH/BTC

This leads to Ethereum, with a confirmed bullish divergence on the MACD and RSI on the weekly timeframe, which is huge.
It clearly shows that people would rather hold ETH over BTC.


Thanks for reading!