Bitcoin (BTC / USD) Lateral Dominance - Out of the bullish channel: what does it mean?

As we saw in the last few weeks, the price of Bitcoin has entered a descending channel, but at the same time we are seeing that the Bitcoin domain that leaves the bullish channel

Let's see what it means

Weekly analysis

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As we see in the chart, I identified a new bullish channel, several weeks ago, from the Bitcoin domain, which could indicate the path that it could follow in its long-term bullish cycle

It has been several weeks since the Bitcoin domain remains at stable values, after its correction and in the last week the dominance corrects again, we will see if this implies good news for Alcoins.

Every time the price of Bitcoin increases rapidly, it affects Dominance and Alcoins

Bitcoin's dominance in recent weeks is below 68 points, which is good for Alcoins.

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Looking at the weekly chart, we see that Dominance has broken the 50-period MA line and the 21-period MA line.

For the past 4 weeks past, he has tried to break dominance over the 21-period MA midline, and this week he has succeeded.

Daily Analysis

Bitcoin's dominance has regressed, this week leaving the bullish channel

But if we see dominance, it has moved for weeks within a side channel.

This could indicate an indesicion of the trend.

Captura de pantalla 2020-07-04 a las 11.52.22 a.m..png

The variation in the past few days means that investors have sold Bitcoin, the volume has decreased.
Investors are withdrawing gains from Bitcoin, and also from Alcoins, that's why we see a drop in volume with dominance in stable stocks.

Why is it important for the domain to go down?

Because reducing Bitcoin's dominance would indicate that cryptocurrency prices with good projects and good volume could continue to recover value

Key points

  • Halving. Bitcoin's halving has already occurred, according to the story, weeks after the price has started a bullish recovery. In the long term, there have been increases in the price of Bitcoin sometimes accompanied by Alcoins and other times not.

  • RSI 1D shows lower levels than the average level on daily chart. 4h chart shows oversold levels

  • The volume of the Bitcoin domain has decreased in recent weeks.

  • Bitcoin's dominance in recent days has been maintained at approximately 66 points, with a peak more than a week ago and a subsequent correction.

  • Domination has lost the ascending channel, for the moment.

We have several possibilities to explore for the price of Bitcoin and how it would impact dominance

The possibilities are two:

  • Break to the upside.

A sharp rise in the price of bitcoin could increase Bitcoin's dominance but could harm alcoins. Investors privilege their investments in bitcoin.
A moderate increase in the price of bitcoin could allow alcoins to accompany this process and the domain would not increase as much.

Breaking the bullish channel may or may not be good for alcoins

Let's see

  • If the bitcoin domain breaks the bullish channel due to a slight price correction, after which it lateralizes the value of bitcoin, which it has done this week, if it continues next week, it would allow an increase or recomposition of the price of Alcoins .

  • The breakout of the bullish channel, this week has been good for the alcoins because the price correction was slight, the dominance has regressed, allowing some alcoins to recompose their prices, to continue next week, it would allow to continue recomposing prices.

  • Break to the downside

You can lower the price and increase the domain, investors take refuge in Bitcoin by selling their alcoins

  • Breaking the price of Bitcoin bearishly with a large candle could damage the entire crypto market, seeing a general drop in prices. With months of recovery as we have already seen.

What Bitcoin should do is make this decision

What 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.

We will continue monitoring
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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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