Technical Analysis – Bitcoin Dominance
Bitcoin dominance is the target in our weekly analysis:
During the last 2 weeks, dominance has decreased to 43.5%, slightly below the 50-day moving average. This moving average serves as support or resistance.
About two weeks ago the dominance established a local top of 47%. We mentioned that Altcoin holders would only need to pay close attention at the 50% mark.
If we stay below 50%, and the period closes there, we could experience more downward pressure to the local bottom of 40%.
The long-term trend is still pointing downwards, but a breaking of the 40% mark could lead to a new ATL.
However, the RSI indicates a bullish divergence, that would potentially suggest another leg up, thus a trend line has been formed that has yet to be broken to signal a stronger downtrend in the short-term
Overall, the altcoin market had some strong days with several cryptocurrencies like Polkadot (DOT) and Ethereum (ETH) benefiting from the decrease in Bitcoin dominance. Low caps were in comparison to mid and high caps still rather modest, which makes sense considering how the money flows from high caps to low caps the further you go in a bull market.
Bitcoin dominance is the target in our weekly analysis:
During the last 2 weeks, dominance has decreased to 43.5%, slightly below the 50-day moving average. This moving average serves as support or resistance.
About two weeks ago the dominance established a local top of 47%. We mentioned that Altcoin holders would only need to pay close attention at the 50% mark.
If we stay below 50%, and the period closes there, we could experience more downward pressure to the local bottom of 40%.
The long-term trend is still pointing downwards, but a breaking of the 40% mark could lead to a new ATL.
However, the RSI indicates a bullish divergence, that would potentially suggest another leg up, thus a trend line has been formed that has yet to be broken to signal a stronger downtrend in the short-term
Overall, the altcoin market had some strong days with several cryptocurrencies like Polkadot (DOT) and Ethereum (ETH) benefiting from the decrease in Bitcoin dominance. Low caps were in comparison to mid and high caps still rather modest, which makes sense considering how the money flows from high caps to low caps the further you go in a bull market.
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.