Bitcoin dominance (BTC.D) breakout
I am writing this because I think some people are switching from altcoins to BTC and it may be to early to tell what point of the cycle we're in. I do believe that altcoin season may have ended and now we are in BTC season, but I don't want to jump to conclusions to early because BTC is at a resistance I will show in my next post. Remember, the daily chart is trustworthy, but the weekly even more.
This chart is the BTC dominance relative to the crypto market (BTC.D) on the weekly. When the chart is bullish BTC performs better than altcoins and when it's bearish it performs worse than altcoins.
As we can see here, there has been a breakout, although it could be a false breakout because:
In conclusion, a breakout of the descending triangle and the MACD is bullish, but we need a breakout from the 15 weekly-EMA for this chart to be bullish and have a high percentage guarantee that switching from altcoins to BTC will be more profitable.
I am not a financial advisor nor recommending to buy or sell; I'm just pointing out that we could potentially enter a market where BTC outperforms altcoins.
Like always, DYOR and don't just listen to an Explosive Cow.
This chart is the BTC dominance relative to the crypto market (BTC.D) on the weekly. When the chart is bullish BTC performs better than altcoins and when it's bearish it performs worse than altcoins.
As we can see here, there has been a breakout, although it could be a false breakout because:
- There has been a breakout in the descending triangle, which is a bearish pattern. This is bullish if there is confirmation of the breakout. It could be a false breakout.
- MACD (blue line) has gone above the signal line (orange line) and there has been a retest of signal line. This is bullish.
- The 15 weekly-EMA is still acting as resistance since January (same period altcoins have outperformed BTC).
In conclusion, a breakout of the descending triangle and the MACD is bullish, but we need a breakout from the 15 weekly-EMA for this chart to be bullish and have a high percentage guarantee that switching from altcoins to BTC will be more profitable.
I am not a financial advisor nor recommending to buy or sell; I'm just pointing out that we could potentially enter a market where BTC outperforms altcoins.
Like always, DYOR and don't just listen to an Explosive Cow.
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