Bitcoin Has Lost Dominance, But Only Temporarily
Hello traders! Today we will talk about Bitcoin, its dominance and ALTcoins.
For the beginning we want to point out that most of cryptocurrencies, even some of ALTs nicely and strongly recovered in the start of 2020, which can be easily a signal for the bottom and a reversal into a bullish mode again, but only against the USD pairs (XXX/USD).
However, as you can see, the major Crypto BTCUSD is not so strong. It's actually rising, but in a much slower pace than some of ALTs and that's what we are going to talk about today.
It's all about dominance in the Crypto market, sometimes BTC is the leader, sometimes ALTs and this can be clearly seen in the BTC dominance chart, which is telling us where XXX/BTC cross pairs can be headed, but of course not all of them. So, we want to to show you how this look like from Elliott Wave perspective.
In the first chart above we can see that BTC is losing dominance since September of 2019, but according to the EW corrective a-b-c structure, this may come to an end soon. We are tracking a regular flat correction in wave 4, so seems like the final move up for wave 5 is still missing.
If we take a look at the examples below, ETHBTC can be also trading in a corrective a-b-c-d-e triangle pattern, so once BTC dominance returns, and once it fully completes a bearish triangle, this is when we can expect a break into new lows for the final wave 5.
It's very similar with EOSBTC, the only difference is that EOS is currently stronger than ETH, which means that EOS made a bigger recovery against the BTC, but it also looks an a-b-c corrective rally in wave 4, especially because of a triangle in wave »b«, so don't be surprised if EOSBTC faces limited upside around the 0.00048 resistance area.
All what we want to say is that yes, most of Cryptos is turning bullish, but be very careful with cross pairs against the BTC (XXX/BTC), because most of these ones may not have reached the bottom yet, especially those which are still trading near the lows like ETHBTC and EOSBTC, while the other ones that made a bigger recovery, may just face a deeper corrective decline.
Be humble and trade smart!
If you like what we do, then please like and share the idea.
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
For the beginning we want to point out that most of cryptocurrencies, even some of ALTs nicely and strongly recovered in the start of 2020, which can be easily a signal for the bottom and a reversal into a bullish mode again, but only against the USD pairs (XXX/USD).
However, as you can see, the major Crypto BTCUSD is not so strong. It's actually rising, but in a much slower pace than some of ALTs and that's what we are going to talk about today.
It's all about dominance in the Crypto market, sometimes BTC is the leader, sometimes ALTs and this can be clearly seen in the BTC dominance chart, which is telling us where XXX/BTC cross pairs can be headed, but of course not all of them. So, we want to to show you how this look like from Elliott Wave perspective.
In the first chart above we can see that BTC is losing dominance since September of 2019, but according to the EW corrective a-b-c structure, this may come to an end soon. We are tracking a regular flat correction in wave 4, so seems like the final move up for wave 5 is still missing.
If we take a look at the examples below, ETHBTC can be also trading in a corrective a-b-c-d-e triangle pattern, so once BTC dominance returns, and once it fully completes a bearish triangle, this is when we can expect a break into new lows for the final wave 5.
It's very similar with EOSBTC, the only difference is that EOS is currently stronger than ETH, which means that EOS made a bigger recovery against the BTC, but it also looks an a-b-c corrective rally in wave 4, especially because of a triangle in wave »b«, so don't be surprised if EOSBTC faces limited upside around the 0.00048 resistance area.
All what we want to say is that yes, most of Cryptos is turning bullish, but be very careful with cross pairs against the BTC (XXX/BTC), because most of these ones may not have reached the bottom yet, especially those which are still trading near the lows like ETHBTC and EOSBTC, while the other ones that made a bigger recovery, may just face a deeper corrective decline.
Be humble and trade smart!
If you like what we do, then please like and share the idea.
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
Explore our services
👉wavetraders.com/elliott-wave-plans/
Learn Elliott Waves
👉 wavetraders.com/academy/
Newsletter Sign up
👉 bit.ly/3FVPVzO
👉wavetraders.com/elliott-wave-plans/
Learn Elliott Waves
👉 wavetraders.com/academy/
Newsletter Sign up
👉 bit.ly/3FVPVzO
Related publications
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.