As we saw in the last days, Bitcoin in the last days has entered a descending channel, the price, but at the same time we are seeing that the dominance of Bitcoin does not regress.
Let's see what it means
Weekly analysis
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
A week ago that the Bitcoin domain remains at low values, after its correction, 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.
Looking at the weekly chart, we see that Dominance has broken the 50-period MA line, but is above the 21-period MA line.
Over the past 4 weeks it has tried to break dominance over the 21-period MA midline but the candles have closed above it.
Daily analysis
Bitcoin's domain is struggling with the 25 period and 1 period MA line. This could indicate a trend line consolidation and a further bullish rise is about to start.
The variation in recent days means that investors have sold Bitcoin, the volume has decreased.
Investors are withdrawing gains from Bitcoin, but more from Alcoins than from Bitcoin, that's why we see a drop in volume with dominance at stable values.
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
In the last days we see that the domain is validating the formation of the ascending channel, since it respects the bottom line of the channel but does not break it, it is serving as a support, but it will have to make a decision.
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 average levels, average level
The volume of the Bitcoin domain has decreased in recent weeks.
Bitcoin's dominance in recent days has been maintained at 66 points approx, with a peak several days ago and a subsequent correction.
Dominance remains in the ascending channel, for the moment.
We have several possibilities to explore
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 down may be good for the alcoins or not
Let's seeIf bitcoin's dominance breaks the bullish channel down due to a slight price correction, after which it lateralizes the value of bitcoin it would allow an increase or recomposition of the Alcoins price.
You can lower the price and increase the domain, investors take refuge in Bitcoin selling their alcoins
- Breaking the price of bitcoin bearishly with a big 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?
Remember to give your post a vote, Always support good content. ThanksFollow me it costs you nothing and you get a Healing Reward with Your Vote
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.
For your vote or comment, thank you