Daily BTC Dominance Update
The BTC dominance chart is an interesting and useful way to look at the interplay between Bitcoin and the Altcoins, or more specifically their price action. It helps us understand whether or not it is the right time to be directing capital into Altcoins, or moving out of them into safer alternatives like BTC, ETH or stable coins.
If the trend is down then BTC is being outperformed by altcoins, and this is the time we would consider taking some positions in some of the riskier higher return coins. If BTC is gaining against the altcoins, then its a good time to get your money out of the smaller coins and protect your capital from large losses.
The overall trend we see here is down, which is expected since altcoins have had massive gains over the last few years.
BTC hit its highest price level in April 2021 and since then we have seen alts and BTC move in a trading range (between the two blue horizontal lines). More recently this has been down towards the lower support line. BTC has been down here twice before and support has held yielding a bounce back to higher levels. The question now is will it hold again??
Well, that is up to you and time to decide, but I would like to propose the scenario you can see in the two white rectangles. The second rectangle encloses a pattern we have seen before (the first rectangle). Have a look at the price movement and the play of the indicator movements and I'll let you come to your own decision :)
Personally, I'm starting to place small amounts of capital into quality altcoins that are now undervalued.
If the trend is down then BTC is being outperformed by altcoins, and this is the time we would consider taking some positions in some of the riskier higher return coins. If BTC is gaining against the altcoins, then its a good time to get your money out of the smaller coins and protect your capital from large losses.
The overall trend we see here is down, which is expected since altcoins have had massive gains over the last few years.
BTC hit its highest price level in April 2021 and since then we have seen alts and BTC move in a trading range (between the two blue horizontal lines). More recently this has been down towards the lower support line. BTC has been down here twice before and support has held yielding a bounce back to higher levels. The question now is will it hold again??
Well, that is up to you and time to decide, but I would like to propose the scenario you can see in the two white rectangles. The second rectangle encloses a pattern we have seen before (the first rectangle). Have a look at the price movement and the play of the indicator movements and I'll let you come to your own decision :)
Personally, I'm starting to place small amounts of capital into quality altcoins that are now undervalued.
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