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Bitcoindominance

Possible bearish retest for BTC.D looking good for Altcoins?*DISCLAIMER: I am not a financial advisor and this is not financial advice as these are purely my opinions and speculations. You should always do your own due diligence before trading or investing. *Follow me for the latest cryptocurrency analyses on my watchlist *Thank you to those who donated, I very much appreciate it. *Let me know in the comment section if you agree or disagree, would love to hear your ideas too.
CRYPTOCAP:BTC.DShort
by CryptoRush_
2
Why BTC pairs matter1. Most liquidity in the space goes through Bitcoin. Still most alts have BTC pairs, most derivatives volume is on BTC and it is also frequently used as collateral for margin trading. People can easily sell BTC to get USDT to buy alts. 2. In 2019 from the lows, BTC went up and squeezed all alts. Alts bottomed vs BTC when Binance closed US accounts & Bakkt launched. We saw two smaller ones this year and several in the past. 3. Synthetic BTC longs via ALTUSD (long) & ALTBTC (short) tend to push alts down when BTC rallies hard as it can be cheaper than a BTCUSD long 4. Alts do best when Bitcoin volatility is low as traders play with them, but when volatility on Bitcoin gets back they tend to do badly. Alts are like invesrse Bitcoin options (short Bitcoin vol) 5. Alts are a very inflationary asset class. Lots of new coins coming on the market, most of which have high inflation (airdrops, bounties, teams dumping, high/mining staking rewards etc)... 6. The less BTC on exchanges and the more held by companies like Microstrategy, Square, Grayscale etc... The less BTC can be used to pump alts. However there is still 2.5-3.5M BTC on exchanges that can be used to buy alts (currently ~30-40B, which is higher than the total stablecoin market cap). During the bull run this number could grow even more both because BTC goes up but also as more BTC gets on exchanges like in 2016-2017. 7. So if BTC is scarce on exchanges, while there is an abundance of USDs and with more coming into the market... which asset do you want more? The USD that will flow in in massive quantities or something that is becoming less and less available? 8. Many traders still want to accumulate more BTC as it has the potential to go up 5-10-20x from here, while the USD can't. It is like measuring the stocks in USD or Gold in order to know what your real returns where. 9. Finally pairs trades are very common in markets. You can 'create' them even if they don't exist and trade various assets against each other and not just the USD. For example why trade EURUSD when EURJPY is cleaner? Why go long EURUSD if the EUR looks awful against most other currencies? It doesn't mean you have to trade the certain pair, but it can help you make better choises. *BTC has 10x more searches than the term cryptocurrency or Ethereum. For someone to get in, they get through Bitcoin first. The hotter Bitcoin is on the news, the more money is flowing into the market and the closer an alt season is. Overall I think looking at USD/USDT pairs alone, is a terrible way to trade alts. Focusing on USD profits alone is also a terrible way to view this market as your goal is to accumulate something scarce that has high potential to appreciate, not some trash fiat currency that is getting inflated. How insolent do you have to be that you believe that by accumulating USD you will be able to outperform Bitcoin during its bull run? From here it could do a 10x, so will you get more than a 10x? Is it worth your time to try to beat the market, instead of build on top of what the market gives you? This doesn't mean that only BTC matters and people should only look at BTC charts, quite the opposite. People need to watch both USD & BTC charts, to have a feeling of where the market is at. People need to know where BTC is in the cycle and what its charts looks like. Some times people need to take profits in USD and not BTC. Some times they need to sell some of their BTC. Some times BTC is so overbought, that alts might look cheap vs BTC but not USD. So both are needed and are useful, as long as you have aUSDT pairs are cleaner and can help you estimate things better when it comes to valuations, but as long as you know where BTC is in the cycle and how over/under valued it is... USDT charts are just a mere tool for TA.
BITSTAMP:BTCUSD
by BitcoinMacro
BTC.D / Bitcoin Dominance about to drop? #BTC.DThe Bitcoin dominance has been falling ever since september of 2019. Since late august of 2020 it has been rising though and altcoins have been bleeding against Bitcoin. Now might be the time to continue the descend. The level of 60.35 seems to have been significant on numerous occasion, working as both restistance and support in may of 2019 and again july-september of 2020. The chart went below it mid-august and has since struggled to break above it. I believe it will keep struggling, get rejected again, fall further letting altcoins surge. Will see... I still believe that BTC.D should at least go to 50.0 before it's super-domination begins.
CRYPTOCAP:BTC.D
by FourApplesADay
1
What does MA200 tell us about BTC.D and altcoins ?Hello everyone, I would like to show you another reason, why I think altcoins are not "dead". If you take a look at left side of the screen (BTC.D - Bitcoin Dominance) You will realize the MA200 (MA - moving average is commonly used with time series data to smooth out short-term fluctuations and highlight longer-term trends or cyclesis pointing) is pointing DOWN on the Weekly chart. meanwhile on the other hand If you take a look at right side of the screen (Total2-Crypto total market cap exclude BTC) You will realize the MA200 is pointing UP on the Weekly chart. Volume also shows, that Bitcoin to altcoins trades are increasing and its huge last 4 weeks. Keep please also in mind that BTC.Dominance trend probably finished its Eliott Wave cycle (W1-5) ******************* If you appriciate my work efforts I would appriciate hitting the like button from you for this TA & If youre in doubts or have any questions then feel free to ask in comments below the chart. Wish you all nice Weekend Cheers ------------------ Risk Disclosure DISCLAIMER: This is not a financial advice ! Cryptocurrency trading involves substantial risk of loss and is not suitable for every investor. The valuation of asset may fluctuate, and, as a result, clients may lose more than their original investment. Investing will have impact on your trading account and this can work against you, leading to large losses or can work for you, leading to large gains. As an investor, it's crucial to know how much of your money you could lose and what circumstances could cause this to occur. Always do your own research and think twice before you invest.
CRYPTOCAP:TOTAL2
by Anoinvest
11
Altcoin season should restart soon if THIS pattern plays outThe current situation: 1. A head and shoulders pattern is apparent on the 12HR chart, while the price action is right underneath the 12HR 200MA. The neckline is at about 59.4% with a measured target of about 57.7% The bullish case for altcoin: if BTC.D gets rejected at the 12HR 200MA and breaks below the neckline. This will signal lower BTC.D and it will look good for most altcoins. The bearish case for altcoins: if BTC.D gets a SOLID close above the 200MA, which may a signal for lower price action for most altcoins. *Follow me for the latest cryptocurrency analyses on my watchlist *Thank you to those who donated, I very much appreciate it. *Let me know in the comment section if you agree or disagree, would love to hear your ideas too. *These are purely my speculations and not financial advice. You should always do your own due diligence before trading or investing.
CRYPTOCAP:BTC.DShort
by CryptoRush_
1
The US Dollar and Cryptocurrency Market Cycles ExplainedIn this post, I’ll be providing an in depth explanation of the (inverse) correlations of Bitcoin, Ethereum, Bitcoin Dominance, and the US Dollar Index. This will help traders understand the general trends of each assets and indices, as well as what to look for the next measured move. I have divided the chart by the 1-2 months, in order to demonstrate clear movements and trends. Ethereum was chosen to represent the entire alt coin market, as it has acted as the leading altcoin for the recent bullish rally. Bitcoin (BTC) is marked by the orange graph, Ethereum (ETH) by the grey graph, Bitcoin Dominance (BTC.D) by the prurple graph, and the US Dollar Index (DXY) by the green graph. March – April 2020 - To begin with, starting in March, up to the end of April, we can see clear trends for all assets and indices. - Bitcoin and the US Dollar Index show a clear inverse correlation, as Bitcoin corrects heavily while DXY experiences a breakout. - However, after Bitcoin’s price recovers, their inverse correlation is not demonstrated too clearly - From March to the beginning of April, Bitcoin’s price rises more rapidly than that of Ethereum. - This leads to the Bitcoin dominance showing a sharp rise. - However, afterwards, ETH demonstrates a similar degree of uptrend – a correlated move with Bitcoin – and this leads the Bitcoin dominance to cool down. April – June 2020 - From the end of April, ETH’s price starts correcting while Bitcoin’s price rises at a very rapid pace - This leads to another breakout in Bitcoin dominance, signifying that capital is flowing from altcoin markets to Bitcoin. - Meanwhile, the US Dollar Index demonstrates a rather correlated move with Bitcoin until the Beginning of June. - As the DXY drops harder, both Bitcoin and Ethereum’s price rises rapidly. - As such, Bitcoin Dominance drops down. June – July 2020 - During this period, there was minimal volume and movement in Bitcoin and altcoins. - As a result, Bitcoin dominance also ranged sideways for a while - Around mid-July, however, Ethereum broke out slightly, marking the beginning of breakouts for other altcoins as well, while Bitcoin continued to consolidate - As a result, Bitcoin dominance fell significantly - An interesting thing to note is how the DXY starts showing a clearer correlation with Bitcoin Dominance once again July – September 2020 - During this time, we can see a clear correlation between Bitcoin and altcoins, specifically Ethereum, and their inverse correlation with Bitcoin Dominance and the US Dollar Index - Notice that there is a spike on the Bitcoin dominance graph, while the overall trend suggests a downtrend - This is because Bitcoin breaks out first, providing confirmation of a bullish market - As capital flows in to the cryptocurrency market, people also seek opportunities to invest in altcoins, which are much more volatile, yet potentially more profitable - The US Dollar index demonstrates a very clear inverse correlation with Bitcoin’s price. September 2020 - We saw a correction in the cryptocurrency market in the beginning of September - Following the previous context, the drop we see for Bitcoin not only happens ahead of Ethereum, but also to a lesser degree. - Ethereum follows Bitcoin’s move in a lag, and as it’s an altcoin, it demonstrates more volatility - Reflecting this move in the cryptocurrency market, Bitcoin dominance breaks out once again - Being more volatile, Ethereum’s dead cat bounce is stronger than that of Bitcoin, showing a sharp drop in Bitcoin dominance around mid-September - The US Dollar Index shows some recovery in its trend along with Bitcoin Dominance. - This means that with the recovery of the DXY, people are reluctant to hold altcoins that are highly risky and volatile October 2020 - We are now seeing movement for these four graphs in October. - Bitcoin and Ethereum demonstrate a strong bullish uptrend, while Bitcoin Dominance and the US Dollar Index continue to fall - This indicates that people are more willing to invest heavily into the cryptocurrency market, in both Bitcoin and altcoins. Summary When the US Dollar Index (DXY) drops, people look to invest their capital. The Dollar Index is greatly affected by macroeconomic factors. Considering that the Federal Bank is pumping out money supply at an unprecedented rate, it’s not surprising to see the US Dollar Index drop so drastically over time. The increase in money supply essentially means that the money you hold will lose its value if it’s not invested. As such, we can clearly see that investors look to take part in the cryptocurrency market, which is clearly demonstrated through the DXY’s inverse correlation with Bitcoin. People are more willing to invest in Bitcoin, the harder the value of the US Dollar falls. When Bitcoin provides bullish confirmation through breakouts and high trading volume, investors gain more confidence in the market, and capital flows into the altcoin markets. This study on the (inversely) correlated trends in the cryptocurrency market demonstrate that investors identify altcoins as a high-risk high-return market, while they view Bitcoin as a digital store of value. If you like this analysis, please make sure to like the post, and follow for more quality content! I would also appreciate it if you could leave a comment below with some original insight.
BITSTAMP:BTCUSD
by Michael_Wang_Official
11
Bitcoin Dominance BTC.D - Bearish Head and Shoulders This is extremely bad for altcoins, this Head and Shoulders pattern is powerful. Also, the major trendline to the downside is broken. Big move is coming and it will be nasty. You can short altcoins on Binance Futures / Bitmex or move your Crypto to USDT temporarily - only for traders. The monthly chart is still bullish for altcoins. Please, hit the like button and follow me for more of these ideas! Also, check my signature down below ↓
CRYPTOCAP:BTC.D
by UnknownUnicorn2537518
4
Bitcoin Dominance (BTC.D) - October 5thBitcoin Dominance gapped down through a 3-year uptrend from 62% to just under 60%, sitting at 59.34% at the moment. This is a good indicator for altcoins going into this next week and even month, that it will be a good month for altcoins in the respect that select ones should out perform Bitcoin very well, such as a handful of the DeFi projects we've seen throughout the summer. I expect the price of Bitcoin to continuously be rising, but altcoins that have an actual use case should do even better.
CRYPTOCAP:BTC.D
by kyer
2
Double bottom 'W' shape ? Since altcoins fail to recover, we see bitcoin dominance in a strong recovery. Investors taking their profit either to USD or Bitcoin. Where we will see a strong bounce to the upside, if it breaks the neckline. This doesn't mean necessarily that the price will follow. But it shows that investors trust might jump back to Bitcoin. Since altcoins having a hard time at the moment. Am still neutral in this perspective, because stock markets are still in a big uncertainty. Crypto markets tend to follow it. But Bitcoin has found strong support arround these price area's.
CRYPTOCAP:BTC.D
by kubilaydereli32
Bitcoin Dominance (BTC.D) - Sept. 18thZooming out a bit here on the dominance chart looking at the 3-day timeframe, you can’t really grasp the entirety of the Bitcoin Dominance chart if you’re looking at the 1-hour timeframe. Ok in the past i’ve done multiple breakdowns before with this same chart and timeframe, but I enjoy updating this chart every month or so for you guys and me to look at. After the altcoin season in 2017, the BTC dominance ratio dropped to a record low of 35.75% and I drew a line of support there as well as an uptrend connecting from the swing low of that move to the next swing low. Finally two years later since i’ve had this line drawn out and the ratio peaked at around 72%, the 3rd point confirming the uptrend finally came into play and touched the top of the trend. These next few weeks are going to tell us now if we’re having an altcoin season this year or just being teased again. Are we going to see Bitcoin dominance spike back up and see a new inflow of money into BTC instead of an altcoin season? kinda unlikely now, as the general trend on the 2-Day is bearish. Bearish as in decreasing % dominance, not Bitcoin going down. I believe that BTC will still rise in price but these altcoins more specifically DeFi projects such as the new UNI token that just dropped on exchanges yesterday proves the hype into these new projects. The DeFi craze is definitely real right now. This trend line that is currently teasing us should break and could see another 2017 altcoin season here pretty soon. The hype of the 2017 altcoin season is definitely here with exchanges like Binance & BitMEX putting out record numbers of users per month.
CRYPTOCAP:BTC.D
by kyer
9
2 Reasons Why ETH Is Bearish Compared To BTC Short-TermIn this ETHBTC chart we see 2 contributing factors: A horizontal level at 0.04 which price touched a few weeks ago. That level is confirmed resistance. There is a clear trading channel since the covid crash low which began the uptrend, which ETH has reached the top of in the past month and failed to break through. This suggests ETH will drop short-term against BTC. Also suggested by ETHUSD (bearish daily) and BTCUSD charts (bullish daily). MaCD on the ETHBTC Weekly is also pushing down. ETHBTC shows a 13% potential drop to the next level of support. Whether you are manually trading or making use of algo-assisted signals, learning to observe higher time-frames and comparative charts like BTC.D (bitcoin dominance) and ETHBTC provides very useful insight. Note: SparksterSignals (including our technical analysis and our algorithmic backtested signals) are not provided as financial advice.
Short
by Sparkster
1
Long Wicks Point To Collapse Of Bitcoin Compared To AltcoinsThe 5-day candle shown from 25th May has a long upper wick showing exhaustion of bullish sentiment, which preceded an 8% drop until now. Today we can see the same type of long upper wick forming on the current 5-day candle, which happens to be directly below the 5-day Ichimoku Cloud (a bearish situation). Despite current market volatility and a consolidation range, it appears the overall altcoin market is ready to make significant advances against bitcoin itself. The outlook for bitcoin is short. The outlook for altcoins is long. Note: SparksterSignals (including our technical analysis and our algorithmic backtested signals) are not provided as financial advice.
CRYPTOCAP:BTC.DShort
by Sparkster
2