BITCOIN DOMINANCE: FACING SOME RESISTANCE
Hello traders, it's me Dexter with yet another update on BTC dominance. This is going to be important so make sure you read it till the very end.
The timeframe used: 3 days.
So, BTC.D is basically Bitcoin’s share out of the total market capitalization of all cryptocurrencies. Bitcoin Dominance tells you whether the altcoins are performing better, worse, or similar to Bitcoin.
Recently, we saw altcoins make some good gains along with BTC, and also we saw BTC dominance increasing close to 9%. Technically, these three don't go along together. If BTC.D increase along with BTC then Altcoins decreases but this time it didn't happen that way. This proves that the trend is changing and the market doesn't necessarily follow the same old rules.
So, what's next?
Both BTC and BTC.D are at the resistance and the total2 broke out above the resistance. If BTC.D breaks above the 44.5% resistance level then it will possibly move toward the next initial target which is the 48%-50% resistance level. A rejection on the other hand may drop the dominance back to a 42.4% support level. Things are crucial at the current resistance level. If BTC.D gets rejected then BTC must continue to rally in order to keep up with the altcoin's rally.
What's your thought on the BTC dominance? If you have a better explanation then I would be happy to know to get some ideas from you guys.
Thank you for reading. Trade safely.
The timeframe used: 3 days.
So, BTC.D is basically Bitcoin’s share out of the total market capitalization of all cryptocurrencies. Bitcoin Dominance tells you whether the altcoins are performing better, worse, or similar to Bitcoin.
Recently, we saw altcoins make some good gains along with BTC, and also we saw BTC dominance increasing close to 9%. Technically, these three don't go along together. If BTC.D increase along with BTC then Altcoins decreases but this time it didn't happen that way. This proves that the trend is changing and the market doesn't necessarily follow the same old rules.
So, what's next?
Both BTC and BTC.D are at the resistance and the total2 broke out above the resistance. If BTC.D breaks above the 44.5% resistance level then it will possibly move toward the next initial target which is the 48%-50% resistance level. A rejection on the other hand may drop the dominance back to a 42.4% support level. Things are crucial at the current resistance level. If BTC.D gets rejected then BTC must continue to rally in order to keep up with the altcoin's rally.
What's your thought on the BTC dominance? If you have a better explanation then I would be happy to know to get some ideas from you guys.
Thank you for reading. Trade safely.
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