BTC DOMINANCE INDEX Percentage of Total Marcet Capitalization (BITCOIN DOMINANCE)
Today we will talk about the bitcoin dominance index (Bitcoin Dominance). The current value is 47.4 %. Dynamics for the week -1.5 %, for the month +11.84 %, since the beginning of the year +26%.
The Tradingview site does not allow adding an image to the text of my idea and there is no tool for analyzing the index of dominance, I share with you my "arts" at the link below:
BITCOIN DOMINANCE
Surprisingly, few people paid attention to this tool until recently. It interested market participants only when the inverse correlation between the growth of the Bitcoin exchange rate and the price of the Altcoins began to appear. At the same time, the dynamics of currency dependence was neutral or downward.
Everything says one thing: in the cryptocurrency market, the movement of money between assets is subject to logic, so simple confidence in their growth is not enough. This requires a good reason.
The reason for these reasons were rumors about the possible approval of ETF on Bitcoin and the likely growth of The latter. Later there were new opinions, and so on rolled. The rumor has spread many options for further developments, but they all boil down to the fact that the outcome will be positive. It's only a matter of time!
At the same time, Altcoins tend to increase at the slightest drop in the index. For example, when the dominance index decreased from April 3 to may 4 (-20%), the value of the Ethereum coin grow up from 0.054 to 0.084 (+55%), Ripple coins (XRP) from 0.00006962 to 0.00001042 (+85%). (There are many more examples of coin growth)
How to use this information?
Technically, Bitcoin Dominance is in a state of strong overbought and reaches 48.4% at the moment. In addition, the correction to a decrease in Fibo, to the level of which can finish, is close to 38.2. Most likely, bitcoin Dominance will change direction and will go along the downward channel.
Support for the index is at the level of 36 — 38, resistance of 50 — 54. By reducing to 39, it is possible to shift the Altcoins to Bitcoin. Upon reaching the 48 — 52, the shift Bitcoin to Altcoins.
The current situation is great for buying Altcoins and selling a Bitcoin!
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