Ethereum : Equilibrium on market and dominance on bitcoinHello fellas, Finally we get some moves on BTC and once again our analysis has met the precision here with a drop. I've warned you about the bull trap region and possible drop. At the time I made this post, the bitcoin dominance is standing at around 69.4% which is extremely high and not ideal for me. So, I believe in the near future, the dominance will throw over from current level and we will see a drop on bitcoin too. The biggest question is, what could happen on altcoin market? will it follow the bitcoin's drop? or will it moves against bitcoin?
Personally, I really think that current price of altcoin is pretty low and most of them has already touched the historical low. I really can't imagine if the price of that altcoin will drop from current level, it will be such a hell. I use only the logical think to represent my view on current market. Just imagine if the dominance of bitcoin decrease, this will mean there will be a money outflow from bitcoin to keep the equilibrium play in this major market and if there is a huge outflow from bitcoin investment, I do believe the money from big investors which is known as whales in crypto industry will fill in the altcoins space to help bitcoin decrease its dominance. This phenomenon will cause a negative correlation between bitcoin and the altcoin.
I choose to pick ETH as my weapon on this possible bullish scenario on alts because Ethereum is the 2nd largest crypto in this universe just under bitcoin in its rank based on market volume. I do believe in its project too.
And from the technical side, it is moving align too with my above statement. currently the price is playing in the break out cycle both on diagonal and horizontal levels and based on the RSI and MACD, I see the price is gaining strength with its bullish divergence on daily based. I need to see 1 more drop toward the white region and if this level can hold on the price, I will open a long position from there.
This will be a beautiful trade if I have all the confirmation is being met and you will feel how satisfied is with this profit.
