Trading crypto with BTC Dominance - Will we recover?
So, are we going up or down? I believe the BTC Dominance chart has the answer.
In the simplest form, as Dominance goes up, the market goes down. As Dominance goes down, the market goes up.
In the chart above we can see this in action last night. Just before the market crashed "from the Elon Tweet" the 4 hour dominance chart was on a TD9 Buy, suggesting dominance was about to go up. What preceded was an overall market crash and rise in BTC dominance. Dominance has now risen and has been rejected by the 4 hour TD double resistance line and is now trading in the 4 hour sell zone. This may suggest be have bottomed out and the dead cat bounce is over, for now, and the greater daily market recovery trend will continue.
Moving to the daily chart, we can see on May 19th, the day of the great crash and swift bounce, BTC dominance was on a daily TD9 Buy, and bounced nearly exactly off the TD Weekly double support line, similar to the BTC price at $29.9.
What I will be watching from here, does the 4 hour double resistance line at 42.95 hold, and if it does then we can look for our market recovery to continue until we get our next TD9 Buy on June 8th. It is worth noting we are also currently in the Fibonacci golden pocket, so an area of some turbulence. I speculate, if the market does continued to recover, we will find BTC Dominance in the 4 hour TD buy zone and in the vicinity of the TD Weekly double resistance line again, and on a daily TD9 Buy. It is at that time I think the market will need to decide if the bull run continues, or if we enter a bear market. All eyes on the green line in the green zone. Either way we end up going, there should heightened volatility in our near future.
T minus 4 days till D day.
Happy trading! Remember to give a thumbs up if you like this analysis.
In the simplest form, as Dominance goes up, the market goes down. As Dominance goes down, the market goes up.
In the chart above we can see this in action last night. Just before the market crashed "from the Elon Tweet" the 4 hour dominance chart was on a TD9 Buy, suggesting dominance was about to go up. What preceded was an overall market crash and rise in BTC dominance. Dominance has now risen and has been rejected by the 4 hour TD double resistance line and is now trading in the 4 hour sell zone. This may suggest be have bottomed out and the dead cat bounce is over, for now, and the greater daily market recovery trend will continue.
Moving to the daily chart, we can see on May 19th, the day of the great crash and swift bounce, BTC dominance was on a daily TD9 Buy, and bounced nearly exactly off the TD Weekly double support line, similar to the BTC price at $29.9.
What I will be watching from here, does the 4 hour double resistance line at 42.95 hold, and if it does then we can look for our market recovery to continue until we get our next TD9 Buy on June 8th. It is worth noting we are also currently in the Fibonacci golden pocket, so an area of some turbulence. I speculate, if the market does continued to recover, we will find BTC Dominance in the 4 hour TD buy zone and in the vicinity of the TD Weekly double resistance line again, and on a daily TD9 Buy. It is at that time I think the market will need to decide if the bull run continues, or if we enter a bear market. All eyes on the green line in the green zone. Either way we end up going, there should heightened volatility in our near future.
T minus 4 days till D day.
Happy trading! Remember to give a thumbs up if you like this analysis.
Comment:
Still time left in the one hour candle, but it's looking more likely to be more than a 1-4 candle bounce and will start a possible 9 count to the resistance line.
We'll want to see a close below resistance.
Still time left in the one hour candle, but it's looking more likely to be more than a 1-4 candle bounce and will start a possible 9 count to the resistance line.
We'll want to see a close below resistance.
Comment:
One hour 9 Sell now.
Next to watch is the pullback and if it will be a 1-4 candle pullback then hire or a reversal lower.
The four hour chart will like reset with a green one. We'll want to use some caution as this could be the start of a leg up higher with the market heading lower.
We are at a point of indecision so will have to wait and see until the chart with our clues coming from the one hour chart.
One hour 9 Sell now.
Next to watch is the pullback and if it will be a 1-4 candle pullback then hire or a reversal lower.
The four hour chart will like reset with a green one. We'll want to use some caution as this could be the start of a leg up higher with the market heading lower.
We are at a point of indecision so will have to wait and see until the chart with our clues coming from the one hour chart.
Comment:
I'll be away for the rest of the day, so a quick update.
A small pop from the TD9 Buy on the 1 hour time frame. It's too early to say but it looks like a weak bounce. Watch for a new setup count down to start.
4 hour was rejected by sell zone with no close above and is now is a count down. Watch the risk line. Things may pick up below. If the count stays in tact, we should see our next 4 hour TD9 buy around midnight, EDT.
A small pop from the TD9 Buy on the 1 hour time frame. It's too early to say but it looks like a weak bounce. Watch for a new setup count down to start.
4 hour was rejected by sell zone with no close above and is now is a count down. Watch the risk line. Things may pick up below. If the count stays in tact, we should see our next 4 hour TD9 buy around midnight, EDT.
Comment:
Tonight should be interesting and could be the start of a rollercoaster ride.
Currently hung up on the 786 fib, which has a chance to bounce dominance higher, market lower.
It looks like we are still on track to get a 4 hour TD9 buy around midnight-4 AM, EDT.
If the 1 hour count does not break, we should get the 1 hour TD9 Buy around midnight, EDT.
Daily is currently on an 8 count. May 18th was the last time we had a daily 8.
I should note, BTC is now on a weekly TD9 buy, suggesting to look for a buying opportunity. A big rally in BTC leaving everything else behind could cause dominance to spike without a crash, but I'm not seeing that happening in the current environment.
Tonight should be interesting and could be the start of a rollercoaster ride.
Currently hung up on the 786 fib, which has a chance to bounce dominance higher, market lower.
It looks like we are still on track to get a 4 hour TD9 buy around midnight-4 AM, EDT.
If the 1 hour count does not break, we should get the 1 hour TD9 Buy around midnight, EDT.
Daily is currently on an 8 count. May 18th was the last time we had a daily 8.
I should note, BTC is now on a weekly TD9 buy, suggesting to look for a buying opportunity. A big rally in BTC leaving everything else behind could cause dominance to spike without a crash, but I'm not seeing that happening in the current environment.
Comment:
The 1 hour TD9 Buy resulted in only a small dominance bump and market dip.
On the 4 hour time frame, we have pushed past the TD9 Buy, but have not yet broken the risk line. The 9 Buy is still in play until the risk line is broken, so we should not rule out a market pull back today.
If/when the risk line breaks we should see the market recovery pick up until we hit our target zone, likely tomorrow, on a daily TD9 Buy.
The 1 hour TD9 Buy resulted in only a small dominance bump and market dip.
On the 4 hour time frame, we have pushed past the TD9 Buy, but have not yet broken the risk line. The 9 Buy is still in play until the risk line is broken, so we should not rule out a market pull back today.
If/when the risk line breaks we should see the market recovery pick up until we hit our target zone, likely tomorrow, on a daily TD9 Buy.
One hour TD9 Buy gave warning of this dump.
We will now watch for a 1-4 candle bounce, already three in, and a rejection here in the sell zone or higher at the resistance line, 42.25, before continuing our recovering.