Technical analysis – Bitcoin dominance
This is the start of a weekly series by which we dig deeper into charts related to the blockchain space. We will purely focus on the technical aspects instead of fundamentals. Do not consider any analysis as financial advice.
Today we would like to start by analyzing the Bitcoin dominance chart as Bitcoin had the chance to climb to ATH at around 64k USD in just a few weeks from the 42k USD level. Altcoins were mostly going sideways or lower with a few exceptions. Looking at the chart we can confirm the bullish sentiment of Bitcoin pairs by observing the Bitcoin dominance to have grown from 40% to around 47%. Here the 0.23 FIB lays, which could serve as the resistance level for the trend to reverse. However, we are reaching >70 RSI daily, which usually leads to more bearish activity in the days to follow, if bulls cannot keep this momentum up. Once MACD is going to converge, momentum will shift to the downside and altcoins have the chance to grow. If we are staying below the previous local high at 49%, we should not worry too much about altcoins bleeding out. If we break 50%, things could look different mid-term and Bitcoin might regain more dominance in the coming weeks. Staying below this key level could signal us that altcoins still dominate the long-term trend.
This is the start of a weekly series by which we dig deeper into charts related to the blockchain space. We will purely focus on the technical aspects instead of fundamentals. Do not consider any analysis as financial advice.
Today we would like to start by analyzing the Bitcoin dominance chart as Bitcoin had the chance to climb to ATH at around 64k USD in just a few weeks from the 42k USD level. Altcoins were mostly going sideways or lower with a few exceptions. Looking at the chart we can confirm the bullish sentiment of Bitcoin pairs by observing the Bitcoin dominance to have grown from 40% to around 47%. Here the 0.23 FIB lays, which could serve as the resistance level for the trend to reverse. However, we are reaching >70 RSI daily, which usually leads to more bearish activity in the days to follow, if bulls cannot keep this momentum up. Once MACD is going to converge, momentum will shift to the downside and altcoins have the chance to grow. If we are staying below the previous local high at 49%, we should not worry too much about altcoins bleeding out. If we break 50%, things could look different mid-term and Bitcoin might regain more dominance in the coming weeks. Staying below this key level could signal us that altcoins still dominate the long-term trend.
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.