Bitcoin's Dominance Will Rise. What Does it Mean?
Bitcoin’s Dominance is currently located at all time lows. The lowest BTC dominance was at 35% when Altcoins were popping back in early 2018.
After the dominance started to increase, the whole market was taking hits especially altcoins.
Now the daily chart of Bitcoin’s dominance is suggesting that the dominance is again about to rise and this can mean few things.
- Bitcoin will fall in value, but altcoins will fall in value faster
(We’ve seen this numerous times, when the market dumps hard, Bitcoin will fell almost always the least.)
- Bitcoin will rise in value, but altcoins won’t be able to catch up
(Bitcoin breakout from $20000 to $40000)
- Bitcoin will be moving sideways meanwhile altcoins will slowly lose their value
(2017 rally to $20000 scenario)
Whichever of these scenarios will play out, the best strategy would be to either buy Bitcoin or buy a stable coin.
RSI is about to break above 60, MACD very likely to push another strong buying wave and the dominance continues to trade at 50 EMA, failing to find resistance.
After the dominance started to increase, the whole market was taking hits especially altcoins.
Now the daily chart of Bitcoin’s dominance is suggesting that the dominance is again about to rise and this can mean few things.
- Bitcoin will fall in value, but altcoins will fall in value faster
(We’ve seen this numerous times, when the market dumps hard, Bitcoin will fell almost always the least.)
- Bitcoin will rise in value, but altcoins won’t be able to catch up
(Bitcoin breakout from $20000 to $40000)
- Bitcoin will be moving sideways meanwhile altcoins will slowly lose their value
(2017 rally to $20000 scenario)
Whichever of these scenarios will play out, the best strategy would be to either buy Bitcoin or buy a stable coin.
RSI is about to break above 60, MACD very likely to push another strong buying wave and the dominance continues to trade at 50 EMA, failing to find resistance.
Related publications
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.