Hello, fellow traders!
This post is about BTC Dominance.
In my last post, I explained how the BTC Dominance chart reflects overall market sentiment.
A downtrend in BTC dominance indicates that investors are seeking more adventurous opportunities whereas uptrend inidactes the opposite. This is because altcoins (such as Dogecoin and many others) are more volatile than Bitcoin, offering investors much bigger profit opportunities but also carrying a greater risk.
The current chart shows a rebound after an aggressive downtrend since November 21st, recovering one third of the losses by percentage.
Looking at the Voxies (VOXELUSDT) and Zcash (ZECUSDT) charts, both cryptos have suffered a massive drop of 21% in a single day as BTC Dominance resurfaces. BTC Dominance continues its rebound today, with much higher volume than yesterday, when it surged by staggering 2.84%. This reflects a wave of fear and correction throughout the market, putting the bull rally to a halt.
Dogecoin suffered an 11% fall yesterday as it failed to break through the price action zone once again. It’s worth keeping an eye on Dogecoin as break below the current uptrend channel could potentially discourage the entire rally. However, the price still remains in the price action zone, which may result in prolonged consolidation.
Ethereum also failed to break throuh the 4k level yesterday, dropping by 7%.
Bitcoin also faced major resistance at 100k level, dropping by 4%.
Now, these charts do not mean that the bull rally is completely over. All we know from these charts is that the crypto market is currently facing a setback – whether this is temporary or complete is not what I cannot tell you in this post – or any post, for that matter.
Numerous articles discuss how governments are considering Bitcoin as their solution for financial challenges (especially the national debt), hinting a possible uptrend for the crypto giant. However, an easy climb is often followed by a steep fall. Besides Bitcoin, the broader crypto market is often heavily influenced by pure hype, often driven by celelbrities, entrepreneurs and social media trends. This is why corrections take place in this market.
I do not recommend making predictions or assumptions about any market, but it’s especially a headache in the crypto market – there are many possible scenarios to think of, so many different variables to consider. The market is already highly volatile, and it is even more unpredictable under the current circumstances.
In conclusion, the market is currently facing a great pullback. (Whether this is temporay or not is what we cannot decide.) Hope this post helps you in any way!
React, don't predict! Stay disciplined and patient. Don't get greedy and be thankful.
God bless :)
Hebrews 12:4-6
This post is about BTC Dominance.
In my last post, I explained how the BTC Dominance chart reflects overall market sentiment.
A downtrend in BTC dominance indicates that investors are seeking more adventurous opportunities whereas uptrend inidactes the opposite. This is because altcoins (such as Dogecoin and many others) are more volatile than Bitcoin, offering investors much bigger profit opportunities but also carrying a greater risk.
The current chart shows a rebound after an aggressive downtrend since November 21st, recovering one third of the losses by percentage.
Looking at the Voxies (VOXELUSDT) and Zcash (ZECUSDT) charts, both cryptos have suffered a massive drop of 21% in a single day as BTC Dominance resurfaces. BTC Dominance continues its rebound today, with much higher volume than yesterday, when it surged by staggering 2.84%. This reflects a wave of fear and correction throughout the market, putting the bull rally to a halt.
Dogecoin suffered an 11% fall yesterday as it failed to break through the price action zone once again. It’s worth keeping an eye on Dogecoin as break below the current uptrend channel could potentially discourage the entire rally. However, the price still remains in the price action zone, which may result in prolonged consolidation.
Ethereum also failed to break throuh the 4k level yesterday, dropping by 7%.
Bitcoin also faced major resistance at 100k level, dropping by 4%.
Now, these charts do not mean that the bull rally is completely over. All we know from these charts is that the crypto market is currently facing a setback – whether this is temporary or complete is not what I cannot tell you in this post – or any post, for that matter.
Numerous articles discuss how governments are considering Bitcoin as their solution for financial challenges (especially the national debt), hinting a possible uptrend for the crypto giant. However, an easy climb is often followed by a steep fall. Besides Bitcoin, the broader crypto market is often heavily influenced by pure hype, often driven by celelbrities, entrepreneurs and social media trends. This is why corrections take place in this market.
I do not recommend making predictions or assumptions about any market, but it’s especially a headache in the crypto market – there are many possible scenarios to think of, so many different variables to consider. The market is already highly volatile, and it is even more unpredictable under the current circumstances.
In conclusion, the market is currently facing a great pullback. (Whether this is temporay or not is what we cannot decide.) Hope this post helps you in any way!
React, don't predict! Stay disciplined and patient. Don't get greedy and be thankful.
God bless :)
Hebrews 12:4-6
Note
Quick update on BTC Dominance:For awhile, it almost seemed like the market was strong enough to overcome the correction and continue the rally. However, that did not last long as the Dominance candle turned back to green.
Altcoins continue to drop further down.
I'll keep the post updated! :)
God bless you :)
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
God bless you :)
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.