Bitcoin (BTC / USD) Dominance Up - Today Breaks Channel? - Caution Alcoins

The dominance of Bitcoin today, at this time, is breaking the channel to the downside which is not good for Alcoins.

Bitcoin has corrected two weeks ago, but the Alcoins more. But if we analyze the Dominance of Bitcoin, it has formed a Double Bottom and has started to rise. I will analyze what it means

Let's see

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3 days ago, the dominance of Bitcoin touched 59 points again and forms a double bottom and bounces.

If the dominance of Bitcoin falls, it means that you are investing in Alcoins, so it would be good for Bitcoin to remain in the downward channel. As we saw in recent months, the price of Bitcoin has entered a descending channel, after exiting its bullish channel

Weekly analysis

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

In the last few weeks it has rebounded, in the 59 points touching the upper channel of the channel, in the price correction, and the dominance has gone down again, forming a double floor. Then this week the dominance of Bitcoin begins to Rise

What we see on a weekly level is that the price of Bitcoin begins to rise but not the Alcoins, investors choose to invest in Bitcoin

Already in the previous report you warned that the lower the probability of a rebound in the dominance of Bitcoin.

If we analyze the weekly candle we see that it is wide and engulfing the previous weekly candle in full and the body of the candle of the last 4 weeks.

Daily analysis

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3 days ago it reached 59 points again which was good for Alcoins as we saw good price recoveries in those days. After which the price rebounds forming a double bottom

If we analyze with elliot waves we can identify a reverse ABC, where ABC could be formed. Where C would reach 59 points.

As bitcoin dominance rebounds and breaks 60 points higher, hopes for an AltSeason wane.

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, which is why we see an increase in the dominance of Bitcoin.

Today we see that the dominance of Bitcoin, breaks the bearish channel, which had been following for months, to the upside.

In the next few days we could see a confirmation of the breaking of the descending channel

Another possibility is that today the price closes within the channel and it has been a false breakout.

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

  • Dominance has broken the descending channel looking for upward momentum.

  • It has already broken 60 points, on the rise the chances of seeing a general rise in Alcoins decrease

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

  • If the increase in the price of Bitcoin rises gradually, and in dominance it could form a side channel, which could allow Alcoins to recover value

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

  • What we are seeing in the last days is this, the price of Bitcoin, at the moment increases gradually but is not being accompanied by a rise in Alcoins

We could see this trend for a few weeks, if the intention of large investors is to take positions in Bitcoin in the face of a possible bull market of cryptocurrencies in the coming years.

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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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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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