Over the last several weeks I’ve been selling my Bitcoin into various Alt-coin positions. It almost does not matter which, a rising tide lifts all boats to coin a phrase. My reasons for doing so is almost exclusively because of the this chart. Take time to study it.
This chart is showing you the ratio in dominance between Bitcoin and Alt-coins. So what’s going on?
1) Dominance between Bitcoin and alt-coins has been exchanging in the above channel (between the orange lines).
2) Price action at the bottom of the channel is a superb time to get exposure to alt-coins.
3) Price action at the top of the channel was a superb time to sell those Alt-coins into BTC .
4) 204 days - peak to peak was 204 days in Alt-coin market tops. I don’t know why. The next peak in Alt-coins in Bitcoin terms is around Mid-June.
5) We can see Alt-coin dominance is about to test the 21-week moving average (green line), probably after Bitcoin makes another move up above $20k.
6) The ‘Oversold / incredible buy’ condition (orange column) on the above 3-day chart tells us we are at the bottom.
7) Index ( - bottom oscillator) resistance was recently broken.
Questions? Just ask below ;)
Here is the recent overbought areas on BTC.D dominance (Green columns) 1-day chart:
The 1st one on November 6th.
What happened to the alt-coin market capital from that date? A +50% move.
I see a catapult being pulled back further and further. A number PM's from folks fretting about the slide in alt-coin dominance, don't worry. The rotation into the Alt-coin market from such a pullback will be something we've not seen before - be patient.
The push caused the alt-coin market to go into a strong oversold condition (orange column). Look left as this happened before.
Hang in there!
The 3-day chart below has printed a new candle. A Dragonfly DOJI indicating a strong rotation is about to occur from Bitcoin to the alt-coin market.
Before I said the further alt-dominance falls the stronger it rises, as if a catapult being pulled back further and further. I'm looking for this run to last until April before we start thinking about rotating into Bitcoin.
Leave a message below if you have questions.
On the positive side there is a regular bullish divergence between dominance and the oscillators, which follows the recently printed Dragonfly DOJI candle.
The Money flow index remains under resistance (bottom oscillator) @ a value of 16. This is ridiculous - normally this would represent an 'incredible buy' with spot. The resistance can remain active until around January 21st at latest. It has to break resistance by then!
Use the BTC address below to identify an asset you would like me to study. More donation = more study ;)