Dominance of stable coins in an important region
Just remembering that the dominance of stable coins is inversely correlated to the price of other cryptocurrencies.
When dominance rises, the price of Bitcoin, Ethereum and other cryptos commonly fall.
We are on an ABC correction within the bearish leg of wave 5.
The yellow circles demonstrate an important pullback region, where we are right now.
The chart is dangerously inside a bullish descending wedge.
I believe the value will break out of the red bearish channel going up, and retest the rectangular region (0.214 retracement).
In my opinion, this will be the moment of truth.
If stable coins do not break this retraction, we will have new lows.
On the other hand, if they break out of this region going higher, we will have a longer leg up.
In a short-term optimistic scenario, the value could break out of this red channel going lower, and retest the last low, what would be bullish for non-stable cryptocurrencies.
Below is a parallel scenario of the Bitcoin chart.
Vertical green lines demonstrate pullback points.
In Bitcoin's bullish channel, it remains to be seen whether the price will stay above the middle of this channel, or if it will go all the way to the bottom.
When dominance rises, the price of Bitcoin, Ethereum and other cryptos commonly fall.
We are on an ABC correction within the bearish leg of wave 5.
The yellow circles demonstrate an important pullback region, where we are right now.
The chart is dangerously inside a bullish descending wedge.
I believe the value will break out of the red bearish channel going up, and retest the rectangular region (0.214 retracement).
In my opinion, this will be the moment of truth.
If stable coins do not break this retraction, we will have new lows.
On the other hand, if they break out of this region going higher, we will have a longer leg up.
In a short-term optimistic scenario, the value could break out of this red channel going lower, and retest the last low, what would be bullish for non-stable cryptocurrencies.
Below is a parallel scenario of the Bitcoin chart.
Vertical green lines demonstrate pullback points.
In Bitcoin's bullish channel, it remains to be seen whether the price will stay above the middle of this channel, or if it will go all the way to the bottom.
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⚡Bitcoin Lightning: forwardocean64@walletofsatoshi.com
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