Bitcoin's price is undecided, but market dominance and volume may give us some clues.
Let's see
Weekly Analysis
Approximately three weeks ago we saw a candle with a large wick, which may indicate the entrance of investors who initially bought bitcoin and then switched to alcoins
As we see in the chart, I identified a new bullish channel of 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 the past few weeks is below 68 points, which is good for Alcoins.
Analyzing the weekly chart, we see that Dominance has broken the 50-period MA line, but has gained the 21-period MA weekly chart
Keys
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, low average
Bitcoin's dominance volume decreases in recent days.
Bitcoin's dominance in recent days has increased little to 67 points approx.
Daily Analysis
- Bitcoin domain is earning 25 MA lines of 1-day periods. This could indicate a consolidation of the trend line and that a new bullish surge is about to begin.
The rise of the Dominion line in recent days means that investors have bought more Bitcoin, but the volume has decreased, which means that investors are withdrawing profit but more from Alcoins than from Bitcoin
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 regain 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.
To respect the ascending channel, a good strategy would be to buy alcoins when the domain is at the top of the channel and sell at the bottom. But the limit would be 70 points, above that value of alcoins, we saw the past that investors sell their alcoins to buy bitcoins.
Today we saw that the price of Bitcoin has fallen, but at the time of making this post it has already recovered what was lost and gained 1% and dominance has risen
Let's look at the total volume of the market.
As we see in the graph, the total volume of the market continues to increase in recent weeks, but in recent days it has decreased somewhat due to profit taking.
This indicates that there is a money inflow that is making investments in Bitcoin and Alcoins. But in the last days they have started to choose more Bitcoin
We also see that the bullish trend line has broken and this could indicate the profit taking from previous investments.
conclusion
Bitcoin's dominance is consolidating and could signal the start of a bullish cycle, while total market volume has increased weekly analysis and decreased in recent days. which means that the investments have bought alcoins for weeks, but part of this is being withdrawn (profit taking) or is destined to invest in bitcoin, caution in the alcoins.
But be careful.
Bitcon's dominance is key, in the face of a rapid rise in the price of Bitcoin it can trigger dominance and reduce the price of alcoins (investors take liquidity from alcoins to increase Bitcoin's price)
We are in key days of a definition of the price of bitcoin, they are key days, we must be attentive to these charts.
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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.
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