Bitcoin Dominance TA, Bearish SignalsRecently I spotted a very strong, long-term bearish signal on this index. A triple-bearish signal as it is present with three indicators. I am talking about a bearish divergence.
Volume has been dropping significantly as the index moves higher.
The weekly RSI peaked October 2023 and has been producing lower highs. The MACD peaked July 2023.
These are long-term, but let's have a closer look and consider the daily chart.
Here we have some interesting signals as well, let's start with the candles:
—Here we have a rising wedge ending in a rounded top and long-term double-top. The uptrend is also in risk of failing. A breakdown of this uptrend, which can happen anytime, would result in a strong crash of this index.
Next is the daily RSI:
—The peak happened November 2024. There is also a short-term lower high as the peak this month happened on the 7th of April, the index peaked on the 22nd.
—The daily RSI is already trending lower.
Clearly the most interesting and revealing of all three indicators is the daily MACD. Let me show you the chart first and then I'll describe the signals:
—Here the lower high is so strong that reveals what is coming to this index. The MACD peaked in February and produced a lower high this month, April. Notice the bearish cross, it happened yesterday.
The daily MACD and RSI trending down with short-term, mid-term, long-term and long long-term bearish divergence all point towards a lower reading on these oscillators.
The last major drop for this index happened in November 2024 with the bottom hitting a month later, December 2024. At this time Bitcoin produced a very strong advance as well as the entire Altcoins market, it was awesome.
It is surely interesting to notice that the index recovers and moves higher while Bitcoin continued to grow. But at that time the Altcoins were starting their correction. Most of the Altcoins peaked late November 2024 and some in early December 2024. So this index is more related to how the Altcoins behave rather than Bitcoin.
When it drops, it does not mean that Bitcoin will drop but that the Altcoins will grow. When it grows, it does not necessarily means that Bitcoin is moving up but that the Altcoins are moving down.
We know the Altcoins are set to produce their strongest growth period since 2021. This Bitcoin Dominance index works as confirmation. It leaves no room for doubt.
» Doubt can remain open as to whether the start of this rise will happen tomorrow or within a few weeks. Short-term, anything goes; the market can become erratic and produce some strong shakeouts, specially preceding a major wave of growth. But after 2-3 weeks, it is 1,000% certain that the entire Cryptocurrency market will be bullish and up. Regardless of what this index does or anything else for that matter. When the time is ripe, the market grows.
The time is ripe right now... You will be happy with the results.
Namaste.
