Bitcoin (BTC / Dominance) Bullish Rebound - Where will liquidity come from if bitcoin dominance rises to 60 points?

in LeoFinance4 months ago (edited)

Will the 2018 cycle be repeating?

Let's see

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A few days ago @toofasteddie published several post about a possible fall in the capitalization of cryptocurrencies, and upward dominance of Bitcoin.

I recommend you follow @toofasteddie

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And it made me ask myself the following question.

Is it possible for the Total Crypto market to fall to 1Trilion?

Which crypto investors would abandon.?

What will happen to the Dominance of bitcoin, will the 2018 cycle repeat?


Is it possible for the Total Crypto market to fall to 1 Trilion?

If we already saw a drop to 1.2 trillion from 2.5 trillion, it is possible that we will reach 1 trillion dollars in the short term.

If we see the graph

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We see that we are staying on the floor of the upper channel of the trident, if we break it we can reach the floor of the lower channel for around 1 trillion dollars in the short term.

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At the time of making this post we are in the 1.5 trillion investments in Bitcoin


Which crypto investors would abandon.?

In general, when corrections begin, investors abandon all cryptocurrencies including bitcoin, but more Alcoins as investors seek refuge in Bitcoin.

Now there is another factor that did not occur in previous cycles, which is the investment of companies and funds in Bitcoin that are buying in the setbacks.

In previous cycles after the first corrections and when bitcoin manages to enter periods of reaccumulation, the Alcoins continued to correct

If we already saw a drop from 1.4 trillion to almost 600 billion in Alcoins, in a few days, why couldn't it continue to decline?

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At the time of making this post we are in the 900 billion investments in Alcoins

Therefore, for there to be a drop in the crypto market to 1 trillion, there would have to be a drop to 500 billion in Alcoins, if we keep investments in Bitcoin constant.

If we see the graph we see that it is possible and would coincide with a support in January 2018.

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What will happen to the Dominance of bitcoin, will the 2018 cycle repeat?

The dominance of Bitcoin not only rises due to greater investments in Bitcoin, but also increases due to divestment in Alcoins.

Nobody tells you what you just read. (It is a secret between you and me).

If we look at the 2018 cycle we see that after making its first big price correction, it begins to oscillate, indicating a re-accumulation zone (orange line).

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But if we see what happened to dominance in the same period, we see how it has rebounded upward.

The same could be happening now in 2021.

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In the graph we see a rebound in the last days after hitting a floor at 40 points.

If it is repeated as in 2018, the objective would be 60 points.

At the moment it seems to be a period of re-accumulation since there are investors interested in buying Bitcoin at these values, which validates this analysis.

And what do you think?.

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Protect your assets use Stop loss

The alcoins market is very dependent on the price of Bitcoin, when Bitcoins goes up the alcoins go up more, but also in the other sense, so I suggest that you periodically review a Bitcoin and use stop loss and move it when they are already in profit. Do not let a profit become a loss.

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Feel free to use and share my post or graphics, but please mention, @criptoar as the author. Otherwise, consider plagiarism and I will call you and advise my friends to do the same.

READ DISCLAIMER: this publication / analysis is only for general information purposes. I am not a professional trader and I will never be a financial advisor. The material in this publication does not constitute any trading advice of any kind. This is the way I see the paintings and what my ideas are.
Perform your own analysis before making an investment decision. Use money that you are willing to lose if you make an investment.
If you make exchanges or investments after reading this publication, it is entirely at your own risk. I am not responsible for any of your gains or losses. By reading this publication, you acknowledge and agree that you will never hold me liable for any of your profits or losses.

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Well explained