Hello everyone
We all are looking for a way how the BTC dominance can go down to 40% area. If we somehow can predict it correctly then we can make some money in the process.
Here is a (maybe not so) wild idea for medium term.
We are on a weekly chart.
Let's check some facts first:
- Stoch RSI is currently high (near 100).
- RSI is at 68
- Chart is making a new higher high - keep in mind previous dominance high (Feb 3rd) was a result of a flash crash of the market so I am referring to previous high as Nov 18th
So we are witnessing a bearish divergence (RSI making lower highs while chart is making higher highs). Hence drop in BTC dominance should just be a matter of time.
What if the universe aligns and following happens:
We are in economically unstable times. Markets are volatile, politicians are unpredictable so further drop in Crypto space is not impossible. BTC drops less then ALTs, BTC dominance reaches top somewhere between now and 67-68% area. In the meantime traditional markets also crash some more. After that the economic situation stabilises, we get Quantitative Easing and this drives price of ETH up, followed by other ALTs.
For reference: ETHBTC has reached strong support between 0.002300 and 0.001700 Satoshi, RSI is at 24 (same level as Sept 2019 when ETHBTC was at a longterm low).
This scenario would ignite Altseason, bringing BTC dominance down for a reset and start of a new cycle.
There are other bearish scenarios as well, keep that in mind. So trade safe and smart.
I am not predicting any of this, I am not even mentioning any possibilities for this to happen. I am just giving you some food for thought.
Good luck!
We all are looking for a way how the BTC dominance can go down to 40% area. If we somehow can predict it correctly then we can make some money in the process.
Here is a (maybe not so) wild idea for medium term.
We are on a weekly chart.
Let's check some facts first:
- Stoch RSI is currently high (near 100).
- RSI is at 68
- Chart is making a new higher high - keep in mind previous dominance high (Feb 3rd) was a result of a flash crash of the market so I am referring to previous high as Nov 18th
So we are witnessing a bearish divergence (RSI making lower highs while chart is making higher highs). Hence drop in BTC dominance should just be a matter of time.
What if the universe aligns and following happens:
We are in economically unstable times. Markets are volatile, politicians are unpredictable so further drop in Crypto space is not impossible. BTC drops less then ALTs, BTC dominance reaches top somewhere between now and 67-68% area. In the meantime traditional markets also crash some more. After that the economic situation stabilises, we get Quantitative Easing and this drives price of ETH up, followed by other ALTs.
For reference: ETHBTC has reached strong support between 0.002300 and 0.001700 Satoshi, RSI is at 24 (same level as Sept 2019 when ETHBTC was at a longterm low).
This scenario would ignite Altseason, bringing BTC dominance down for a reset and start of a new cycle.
There are other bearish scenarios as well, keep that in mind. So trade safe and smart.
I am not predicting any of this, I am not even mentioning any possibilities for this to happen. I am just giving you some food for thought.
Good luck!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.