BTC Market Dominance
Updated
BTC dominance has recently skyrocketed sending money out of the alts and into BTC . While BTC strength has outperformed the overall market, its price has stayed relatively neutral the past week (bottom graph). Based off the fact TA and FA is predicting an upwards BTC move to 40k+ (part of my strategy), it would not be unlikely too see a loss in strength from BTC as altcoins begin to outperform the asset in terms of volatility price (%) change. This market favours volatility .
If this is to be the case, I am betting on altcoins rallying in the comming months, outperforming BTCs own potential secondary upward movement. This is playing into the long term trends and will be a longer timeframe movement overall (1-3 months). Whatever the case, if the overall market does begin to shrink and BTCs strength begins to fall, altcoins should be the superior store of value.
Potential swing/rebound %:
45.54% (DOWNWARDS - now) - needs to return to equilibrium, has gained strength too fast.
43.8% (UPWARDS) - if we do see a downturn this area could offer a bounce point ( BTC price would be around
41K)
Depending on if these levels act as support/resistance will dictate the future market dominance of BTC and have inflience on market prices.
If this is to be the case, I am betting on altcoins rallying in the comming months, outperforming BTCs own potential secondary upward movement. This is playing into the long term trends and will be a longer timeframe movement overall (1-3 months). Whatever the case, if the overall market does begin to shrink and BTCs strength begins to fall, altcoins should be the superior store of value.
Potential swing/rebound %:
45.54% (DOWNWARDS - now) - needs to return to equilibrium, has gained strength too fast.
43.8% (UPWARDS) - if we do see a downturn this area could offer a bounce point ( BTC price would be around
41K)Depending on if these levels act as support/resistance will dictate the future market dominance of BTC and have inflience on market prices.
Note
BTC has recently spiked in dominance as money has flowed into it, it is once again back at the resistance zone. Will watch carefully in order to calculate the strength of alts in the following weeks.Trade closed: target reached
We entered a consolidation period, will reevaluate likely future outcomes using a different graph, still personally looking for BTC.D too follow the longer term downwards trend.
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