Bitcoin (BTC / USD) Dominance - Alcoins Short-term opportunity?

Bitcoin has corrected last week, but the Alcoins more. But if we analyze the Dominance of Bitcoin, in the last week, it has dropped. I will analyze what it means

Let's see

Captura de pantalla 2020-09-12 a las 10.50.28 a.m..png

3 days ago the dominance of Bitcoin breaks 60 points again.
The dominance of bitcoin since on other occasions when it has broken 60 points the Alcoins, with projects, have gone up in a generalized way

If the dominance of Bitcoin falls, it means that you are investing in Alcoins.

As we saw in recent months, the price of Bitcoin has entered a descending channel, after exiting its bullish channel

Weekly analysis

Captura de pantalla 2020-09-12 a las 10.18.53 a.m..png

Bitcoin's dominance has been moving for months within a descending side channel.

In the last weeks it has rebounded, in the 60 points touching the upper channel of the channel, in the correction of the price, and the dominance goes down again, it breaks the 60 points but it returns

What we see on a weekly basis that although the correction in the price of Bitcoin was lower than that of Alcoins, investors continue to choose to invest in Alcoins due to the good profitability it can give in the short term

The more Bitcoin falls, the more likely it is to rebound from the bullish dominance (see graph below dotted at 57 points).

Daily analysis

Captura de pantalla 2020-09-12 a las 10.50.28 a.m..png

3 days ago it broke the 60 points again which is good for Alcoins since we saw good price recoveries in the last few days.

If we analyze with elliot waves we can identify a reverse ABC, where ABC could be formed. Where C would reach 57 points

This would indicate that now the dominance of Bitcoin would go down and could give us an AltSeason?

Why is it important that the domain goes down?

Because reducing the dominance of Bitcoin would indicate that the prices of cryptocurrencies with good projects and good volume could continue to recover value

The variation in the last few days means that investors have invested in Bitcoin but more in Alcoins, which is why we see a decrease in the dominance of Bitcoin.

In the next few days we could see continue through the descending channel looking for a new support at 57 points with good opportunities in the Alcoins if this happens

Key points

  • Halving. The Bitcoin halving has already occurred, according to history, weeks after the price began a bullish recovery. In the long term, there have been increases in the price of Bitcoin sometimes accompanied by Alcoins and sometimes not.

  • The volume of the Bitcoin domain has remained with a ceiling in recent weeks, at 62 points, going down in recent days

  • Continued dominance by the descending channel seeking new support

  • It has already broken 60 points, we could see a general rise in Alcoins at some point

We have several possibilities to explore the price of Bitcoin and how dominance would affect Alcoins

  • Minor price corrections or short increases in Bitcoin price

If the dominance of bitcoin continues to decline due to a slight rise or fall in prices, after which it lateralizes the value of bitcoin, it would be good for alcoins.

Continuing along the descending channel would be good for Alcoins, dominance would continue to decline, allowing some Alcoins
to rebuild their prices.

We should continue this trend if the intention of large investors is to take positions in alcoins in the face of a possible bull market for cryptocurrencies in the coming years.

  • Strong increases or strong corrections, in the price of Bitcoin

Bitcon's dominance is key, facing a rapid rise in the price of Bitcoin can trigger a surge in dominance and lower the price of Alcoins (investors take liquidity from Alcoins to increase the price of Bitcoin).

A big rise in the price of Bitcoin would increase its dominance and reduce liquidity of the Alcoins if no new capital enters the cryptocurrency market

May lower the price of bitcoin (strong correction) and increase dominance, investors take refuge in Bitcoin by selling their alcoins

A large downward correction in the price of Bitcoin with a large candle could damage the entire cryptocurrency market, seeing a general drop in prices. With months of recovery as we have already seen

Conclusion

For now we have seen a moderate correction in the price of Bitcoin that is being accompanied by further declines in Alcoins, initially, with a price recomposition later. Hence the low dominance. The dominance of Bitcoin could continue to fall to 57 points, if it happens, it would be a good opportunity to obtain gains in Alcoins in the short term

The market is moving both Bitcoin and Alcoins in search of attracting new investors.
If new investors do not enter the cryptocurrency market to continue in this cycle, Bitcoin and Alcoins are bullish, at some point Bitcoin will take liquidity from Alcoins to continue its upward path.

What you think?

Remember to give your post a vote, Always support good content. Thanks

Follow me it costs you nothing and you get a Healing Reward with Your Vote

bitcoin-imagen.jpg

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.

We will continue monitoring
To be attentive
Protect your Investments

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.

Captura de pantalla 2020-05-09 a las 11.59.54 a.m..png

For your vote or comment, thank you



0
0
0.000
0 comments