Bitcoin Dominance - Alts on hold
Updated
Looking at the bitcoin dominance chart and trying to make decisions on alt plays can be very tricky. This chart is really dictated predominantly by performance of top5-10 alts vs BTC. So conceivably, ETH alone could perform badly vs BTC and BTC dom would go up while many other alts perform very well against BTC. Also, I on the fence about whether or not it makes sense to chart something which is not being traded. I suppose it is still a trend and represents other assets being traded so still a reasonable tool in the overall picture.
At the moment, if I do an EW count, I believe we are in the final stages of BTC dominance dropping. Short term, it looks like we are in wave 4 of 5 and I'd expect dominance to reject at the blue box and continue lower. That would end up being, for many alts, the 5th and final wave of this particular cycle. If dominance clears the blue box, then I'll be leaning towards Alts bleeding vs BTC for a longer stretch.
The big question is whether BTC dominance increases due to BTC price increase or decrease. At the moment, when BTC goes up, so do alts and vice versa. That can certainly change quickly though so will have to wait and see.
At the moment, if I do an EW count, I believe we are in the final stages of BTC dominance dropping. Short term, it looks like we are in wave 4 of 5 and I'd expect dominance to reject at the blue box and continue lower. That would end up being, for many alts, the 5th and final wave of this particular cycle. If dominance clears the blue box, then I'll be leaning towards Alts bleeding vs BTC for a longer stretch.
The big question is whether BTC dominance increases due to BTC price increase or decrease. At the moment, when BTC goes up, so do alts and vice versa. That can certainly change quickly though so will have to wait and see.
Note
Not much has changed. Still expecting the blue box to play resistance, but not there yet.
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