Bitcoin Dominance Short-Term Reversal
Updated
First-time publisher here!
We have a major trend reversal today as far as BTC dominance. It's currently breaking out to the upside - and hard!
I've placed some local targets that it may soon reach. Personally, I'll be targeting roughly 52.5%. That would be 2 more similar measured moves on the 4-hour, which would take us somewhere in the vicinity of $62-63k.
There may be a fast climb and major wick to the upside, similar to April 23rd which I have highlighted in the chart.
The wick could cover the top of the previous high before resuming the downtrend.
I do believe overall dominance will fall further in the next couple of months due to the Ethereum protocol update; a strong temporary reversal like this may cause some turbulence in the rest of the market for a day or so however so, tread carefully!
If you have caught this move from BTC early on and reallocated capital, be prepared to switch back into alts or step back again and reanalyze the market once this move has completed. Thank you.
We have a major trend reversal today as far as BTC dominance. It's currently breaking out to the upside - and hard!
I've placed some local targets that it may soon reach. Personally, I'll be targeting roughly 52.5%. That would be 2 more similar measured moves on the 4-hour, which would take us somewhere in the vicinity of $62-63k.
There may be a fast climb and major wick to the upside, similar to April 23rd which I have highlighted in the chart.
The wick could cover the top of the previous high before resuming the downtrend.
I do believe overall dominance will fall further in the next couple of months due to the Ethereum protocol update; a strong temporary reversal like this may cause some turbulence in the rest of the market for a day or so however so, tread carefully!
If you have caught this move from BTC early on and reallocated capital, be prepared to switch back into alts or step back again and reanalyze the market once this move has completed. Thank you.
Note
Update: Well, bitcoin's move to the upside triggered ethereum to break upwards as well. My idea was short-lived as it is clearly ready to outperform bitcoin at this point. Bitcoin has reached the .618 retracement zone of its previous move downward and is up against strong resistance, whereas eth is in uncharted territory. The divergence will only get larger in the coming weeks as eth goes parabolic.The only shot my idea has now of coming true would be if btc quickly completed this upward move today as an inverse head and shoulders pattern, then continued into all-time highs faster than ethereum continued to move upward.
Keep in mind whether dominance climbs or continues to fall that doesn't necessarily mean you won't make money holding btc. This whole market is in a period of hyper-growth that should continue over several months to a year.
TLDR: This is bitcoin's last stand as far as dominance goes and it is clearly fighting as hard as it can to retain it. Unfortunately this idea runs counter to the current strong trend and is now unlikely to play out.
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