BTC & BTC.D: The Secret to 'Alt Season' 1D (Jul. 28)
X Force Global Analysis:
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In this analysis, we explore the relationship between Bitcoin's BTC/USD daily chart and the Bitcoin Dominance chart (BTC.D), which demonstrates bitcoin's relative market capitalization compared to the entire cryptocurrency market capitalization.
Analysis
- Bitcoin has recently shown extremely bullish impulse moves, breaking through strong resistance at 10.5k
- This was a measured move that followed after a long phase of consolidation between 8-10k.
- Throughout history, Bitcoin and the Bitcoin dominance chart has shown a relative movement as follows:
- Every time Bitcoin shows sideways movement, trading within a box, Bitcoin dominance shows a downtrend
- When Bitcoin breaks out of the sideways movement, Bitcoin dominance also shows an uptrend
- As Bitcoin reaches local top regions, it shows a sideways movement once again, trading within a box
- Reacting to this move, Bitcoin dominance shows a downtrend once again.
What We Believe
As such, taking into consideration the relationship between Bitcoin's measured moves and Bitcoin Dominance, it would be reasonable to expect an "alt season" as Bitcoin tops out at local resistance, showing sideways movement within a box range.
Let us know what you think in the comment section below
Trade Safe.
If you find our analyses to be helpful, make sure to support us by dropping a ‘like’
In this analysis, we explore the relationship between Bitcoin's BTC/USD daily chart and the Bitcoin Dominance chart (BTC.D), which demonstrates bitcoin's relative market capitalization compared to the entire cryptocurrency market capitalization.
Analysis
- Bitcoin has recently shown extremely bullish impulse moves, breaking through strong resistance at 10.5k
- This was a measured move that followed after a long phase of consolidation between 8-10k.
- Throughout history, Bitcoin and the Bitcoin dominance chart has shown a relative movement as follows:
- Every time Bitcoin shows sideways movement, trading within a box, Bitcoin dominance shows a downtrend
- When Bitcoin breaks out of the sideways movement, Bitcoin dominance also shows an uptrend
- As Bitcoin reaches local top regions, it shows a sideways movement once again, trading within a box
- Reacting to this move, Bitcoin dominance shows a downtrend once again.
What We Believe
As such, taking into consideration the relationship between Bitcoin's measured moves and Bitcoin Dominance, it would be reasonable to expect an "alt season" as Bitcoin tops out at local resistance, showing sideways movement within a box range.
Let us know what you think in the comment section below
Trade Safe.
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