ALT Dominance (Prj.Y19.P03).Further Downtrend
This is a WEEKLY Chart (TOTAL2) which is market cap of the ALTs minus BTC cap
Observation:
* 20 EMA on the Weekly is acting as resistance (black line)
* 100 EMA also acting as resistance (blue line)
* We have a lot of resistance in this area
* On the Daily, we have hit the 0.786 retracement which could suggest that the bottom has been in.
* Alts has had a dismal performance as the restracement barely made the 0.236 fib level
* Market cap is ranging in the RED Zone
* Trend is still downwards with a BULL divergence in play, which explains the current rise of the ALTs
Thoughts:
Until we see the ALTs break the 20 EMA, it is advisable not to go long on the ALTs.
As one can see the BTC Dominance Chart (below) we can observe that there is for now a support at the 68.5% level (0.236 fib level)
One could probably find a reversal here, which could be either a strong bull break up or a big bear break down.
Its also possible that we approach the next fib retracement to the 0.382 level for a reversal as well.
For now, I would think that BTC dominance will go sideways just like the ALTs for the short period of indecisiveness.
Daily Chart for TOTAL2
Daily Chart for TOTAL2 with 20, 100 and 200 EMAs.
Below is the BTC Dominance chart on the Daily
Observation:
* 20 EMA on the Weekly is acting as resistance (black line)
* 100 EMA also acting as resistance (blue line)
* We have a lot of resistance in this area
* On the Daily, we have hit the 0.786 retracement which could suggest that the bottom has been in.
* Alts has had a dismal performance as the restracement barely made the 0.236 fib level
* Market cap is ranging in the RED Zone
* Trend is still downwards with a BULL divergence in play, which explains the current rise of the ALTs
Thoughts:
Until we see the ALTs break the 20 EMA, it is advisable not to go long on the ALTs.
As one can see the BTC Dominance Chart (below) we can observe that there is for now a support at the 68.5% level (0.236 fib level)
One could probably find a reversal here, which could be either a strong bull break up or a big bear break down.
Its also possible that we approach the next fib retracement to the 0.382 level for a reversal as well.
For now, I would think that BTC dominance will go sideways just like the ALTs for the short period of indecisiveness.
Daily Chart for TOTAL2
Daily Chart for TOTAL2 with 20, 100 and 200 EMAs.
Below is the BTC Dominance chart on the Daily
Discord: discord.com/invite/vb4hbP88vb (TradeToProspa)
Telegram: t.me/TprospaTradersbot
This community has signals now but with no risk management comms.
Telegram: t.me/TprospaTradersbot
This community has signals now but with no risk management comms.
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.