Hello everyone,
I present my idea regarding BTC dominance and what could happen to alts.
As we can see in the weekly chart I compared what happen in the final stage of the last cycle of 2017 with what are happening right now.
In both cases after a big fall of the dominance, which led the alts to disengaged from btc, there was a moment of consolidation, let's dive into that:
- 2017 cycle.
The dominance was bouncing between a level of resistance and support, the RSI was rising with bullish divergence, the MACD was rising but remaining under the histogram.
Then the dominance broke the support and set new lows. That was the final stage of the bull run: btc retracing and altcoins went to a blow off top (alts season).
- 2022 cycle.
The dominance is bouncing between a level of resistance and support, the RSI is rising with bullish divergence, the MACD was rising but still under the histogram.
By comparing 2017-2022: we can see a lot of similarities between this two moments.
The question is what will happen now? The dominance is gonna breaks the support or the resistance?
We can't predict the future but we can make our best guess about it and a good way to do it is analysing what happen in the past:
- If the market is gonna follow what happened the last time we can expect that the dominance will break the support and set new lows (comparing fractals, around 25%) led to an alts season, while btc is gonna make the last retracement before entering in a bear market.
- If the dominance will break resistance there will be no alts season.
Comments and opinions are welcome.
Enjoy your day!
**NOT financial advice, everyone do their own research**
I present my idea regarding BTC dominance and what could happen to alts.
As we can see in the weekly chart I compared what happen in the final stage of the last cycle of 2017 with what are happening right now.
In both cases after a big fall of the dominance, which led the alts to disengaged from btc, there was a moment of consolidation, let's dive into that:
- 2017 cycle.
The dominance was bouncing between a level of resistance and support, the RSI was rising with bullish divergence, the MACD was rising but remaining under the histogram.
Then the dominance broke the support and set new lows. That was the final stage of the bull run: btc retracing and altcoins went to a blow off top (alts season).
- 2022 cycle.
The dominance is bouncing between a level of resistance and support, the RSI is rising with bullish divergence, the MACD was rising but still under the histogram.
By comparing 2017-2022: we can see a lot of similarities between this two moments.
The question is what will happen now? The dominance is gonna breaks the support or the resistance?
We can't predict the future but we can make our best guess about it and a good way to do it is analysing what happen in the past:
- If the market is gonna follow what happened the last time we can expect that the dominance will break the support and set new lows (comparing fractals, around 25%) led to an alts season, while btc is gonna make the last retracement before entering in a bear market.
- If the dominance will break resistance there will be no alts season.
Comments and opinions are welcome.
Enjoy your day!
**NOT financial advice, everyone do their own research**