Elliot wave perspective on bitcoin dominance
Hello fellas, we've seen a huge moves on bitcoin in these past few days and in this specific post, I want to do a quick update analysis about the dominance of bitcoin. If you've seen my previous analysis about the correlation between bitcoin dominance and the bitcoin's price, you should know that lately bitcoin's price has a positive correlation with the bitcoin dominance.
Looking at the chart, I use the daily chart which is pretty consistent for the use of swing trader and has a great confirmation whatsoever. Based on EW perspective, I see that the period between September 5th, 2019 - November 12th, 2019 was the A corrective wave in bigger cycle. And with this fact, we can easily see that the A wave has formed a type of Falling wedges or usually known as a leading first wave diagonal. Usually, after this action, we will see the B wave that correct the action of A wave in this market cycle and the B wave could spike to the upside that moves align with the golden pocket zone.
But, other than that, we must consider the 70% level as a strong resistance for this dominance structure. with the price of bitcoin has a potential to touch again $8000 region, I do believe this dominance will have the similar spike as bitcoin has. The higher dominance level of bitcoin means the higher money inflow of the bitcoin and if more money inflow occur on bitcoin, we will see the demand spike comparing with the number of supply of bitcoin which will affect the increase of the price on bitcoin.
Looking at the chart, I use the daily chart which is pretty consistent for the use of swing trader and has a great confirmation whatsoever. Based on EW perspective, I see that the period between September 5th, 2019 - November 12th, 2019 was the A corrective wave in bigger cycle. And with this fact, we can easily see that the A wave has formed a type of Falling wedges or usually known as a leading first wave diagonal. Usually, after this action, we will see the B wave that correct the action of A wave in this market cycle and the B wave could spike to the upside that moves align with the golden pocket zone.
But, other than that, we must consider the 70% level as a strong resistance for this dominance structure. with the price of bitcoin has a potential to touch again $8000 region, I do believe this dominance will have the similar spike as bitcoin has. The higher dominance level of bitcoin means the higher money inflow of the bitcoin and if more money inflow occur on bitcoin, we will see the demand spike comparing with the number of supply of bitcoin which will affect the increase of the price on bitcoin.
