Altseason on the Horizon!!
Bitcoin dominance is once again falling after what looked like a possible reversal to the upside of this descending channel, i predicted that we would see a push up to the top of the channel before then bouncing off and continuing the downtrend. We are looking very good as far as the altcoins are concerned, everytime BTC dominance falls the altcoins get a boost and in my opinion we are not even close to the full blown altseason i have been talking about, honestly due to the fact that in the 2018 altseason peak we had a BTC dominance of aprx 35% and as you guys can see we are very far off that number, another great reason is because of the shear growth of crypto and altcoins in general, back in 2018 is was pretty rare for people to be involved in crypto and if they were it was likely in Bitcoin, the growth and adoption of both BTC and all the altcoins has done tremendous numbers and just based of that there is good reason to believe that this altseason will be the largest in history. Lets take a look at some key indicators, the first is the EMA Ribbons, this indicator is a slow mover and shows the strength and momentum of the bears and bulls, and in this case where our red ribbons are ontop of the green we are measuring the bears momentum. This indicator has not even come close to its full effect we are just getting going, that is due to the fact that the ribbons are still very compressed together and the more and more they spread out the bigger the momentum is. If you go back on the charts and even look at the bullish cycles of this indicator you will notice that the ribbons are not even close to being fully spread out, and when they do reach the stage of max spread the gains or losses are absolutely huge, this is a great tool to keep an eye on to judge the strength and power of the current cycle and have a good guess of where we currently are and where we can end up. The RSI is on here because it shows us exactly where we are in a trend stance, below the midline we are in a confirmed downtrend and the opposite is true for above the midline. So confirmed downtrend that is constantly holding on our BTC dominance means big gains and explosive moves for the altcoins, and the longer we hold this the faster altseason will come. Before we get into our last indicator we have some important levels to talk about, first off being the descending channel, we just had a close underneath the bottom of this channel and this ultimately turns this level into resistance which is great for the altcoins. Just above here we have resistance at 41.22% and 41.57% which are both decently strong levels, then of course we have the top of the descending channel and then heavy resistance at the 42% level, overall this makes a climb back up a lot more tough and highly likely that we wont see an uptrend for quite awhile. Now our next must break support level is the 40.50% level and i personally this might take a couple trys just because we have barely seen action here at all recently, 1 time recently but then not since awhile back. Now the ADX, we have seen a strong downswing here on this indicator and what this basically shows us is the average direction of price action and many people might of thought we have bottomed out here recently with a little curl upwards but it seems we are getting back to the norm with the ADX moving sideways and slightly downwards! Not financial advice just my opinion!
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