Bitcoin's price is undecided, but market dominance and volume may give us some clues.
Dominance has to make a decision either to break the resistance of the 21-day average line or break the bullish channel.
We have several possibilities to explore
Let's see
Weekly analysis
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.
Whenever 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 has gained the 21-period weekly MA chart in the last 2 weeks showing candlestick.
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 domain volume increases slightly in recent days.
Bitcoin's dominance in recent days has increased little to 67 points approx.
Daily analysis
Bitcoin's domain is struggling with the 25-day 1-period MA line. This could indicate a trend line consolidation and a further bullish rise is about to start.
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 profits 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 recent days we see that dominance 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.
We have several possibilities to explore
The possibilities of dominance are two:
Break the resistance of the 21-period midline to the upside. (Which we should see the impulse it takes to know if it is good for the alcoins).
A strong boost in the price of bitcoin could increase Bitcoin's dominance but could hurt alcoins. Investors privilege their investments to bitcoin.
A moderate boost in the price of bitcoin could allow to accompany this process and the dominance would not rise as much.
- Breaking the bullish channel to the downside can be good for the alcoins or we don't see
If the dominance of bitcoin breaks the bullish channel downwards due to a slight price correction, after which it lateralizes the value of bitcoin it would allow a rise or recomposition of the price of alcoins.
- You can lower the price and increase dominance, investors take refuge in Bitcoin by selling their alcoins
Breaking the price of bitcoin bearishly with a large candle could hurt the entire crypto market, seeing a general price drop. With months of recovery as we have already seen.
What Bitcoin should do is make this decision. This lateralization of Bitcoin for some reason is no longer serving alcoins to continue recovering value.
What do you think Break the dominance of Bitcoin in a bullish way, respecting the channel or will it continue to lateralize the price?
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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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