#Bitcoin Dominance Mid-Term Analysis using VPVR Indicator
Updated
Hello there ladies and gentlemen, BulloTaurus here with some Educational Bitcoin Dominance Chart Analysis.
For the past months we had an amazing bull run so far! Bitcoin broke all previous resistances like there were none of them!
We still didn't saw a massive volume spike on exchanges, mostly because this time we have Institutional Investors join the game that have their own private offers to buy bitcoin what doesn't always show on graphs.
Thanks to VPVR ( Volume Profile Visible Range) indicator that is available only in Premium Plan from TradingView, i can show you something very important again.
We can see that at 67% we have a huge demand zone, this is illustrated perfectly thanks to VPVR.
VPVR displays trading activity over a specified period and plots a histogram on the chart which reveals dominant and significant price levels based on volume and in essence gives a clear indication of Supply or demand at a certain price rather than volume in a certain period.
Traders that use this indicator try to use it as a support or resistance confirmation.
Based on previous HVN (±64%) we might have a dip up to 60% in the next following weeks. HVN = High Volume Nodes or HVN are represented as peaks of volume on VPVR indicator, they usually mean that there was a lot of demand in the market at a specific price. These Nodes form when price spends a great amount of time at a certain price level, usually as a consolidation.
If the price leaves the HVN, like we have right now on
BTC.D chart, we might see the drop that i explained earlier, basically like losing the resistance.
Conclusion
Volume Profile Visible Range is used frequently by professional traders,BTC.D might not be the best example of how this indicator might work to show all its potential. Personally i expect a dip in Bitcoin Dominance Chart, holiday season might also contribute to this short-mid term down movement.
Trade wisely and don't forget risk management and setting your stop-loss.
I will keep updating this Educational Material with fresh examples and show its full potential.
Peace.
For the past months we had an amazing bull run so far! Bitcoin broke all previous resistances like there were none of them!
We still didn't saw a massive volume spike on exchanges, mostly because this time we have Institutional Investors join the game that have their own private offers to buy bitcoin what doesn't always show on graphs.
Thanks to VPVR ( Volume Profile Visible Range) indicator that is available only in Premium Plan from TradingView, i can show you something very important again.
We can see that at 67% we have a huge demand zone, this is illustrated perfectly thanks to VPVR.
VPVR displays trading activity over a specified period and plots a histogram on the chart which reveals dominant and significant price levels based on volume and in essence gives a clear indication of Supply or demand at a certain price rather than volume in a certain period.
Traders that use this indicator try to use it as a support or resistance confirmation.
Based on previous HVN (±64%) we might have a dip up to 60% in the next following weeks. HVN = High Volume Nodes or HVN are represented as peaks of volume on VPVR indicator, they usually mean that there was a lot of demand in the market at a specific price. These Nodes form when price spends a great amount of time at a certain price level, usually as a consolidation.
If the price leaves the HVN, like we have right now on
BTC.D chart, we might see the drop that i explained earlier, basically like losing the resistance.Conclusion
Volume Profile Visible Range is used frequently by professional traders,
BTC.D might not be the best example of how this indicator might work to show all its potential. Personally i expect a dip in Bitcoin Dominance Chart, holiday season might also contribute to this short-mid term down movement.Trade wisely and don't forget risk management and setting your stop-loss.
I will keep updating this Educational Material with fresh examples and show its full potential.
Peace.
Note
We might see soon some big spike in Bitcoin's dominance, the most trading volume is gone during holiday season.Trade active
Interesting to watch how the 200 EMA is acting as resistance in Bitcoin Dominance.
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