If BTC corrects (as it may) expect dominance to rise
Many Defi and NFT altcoins have indeed made insane gains, smallcaps have pumped while large caps have remained relatively stagnant. Ethereum in particular (10X larger than the next biggest alt by market cap, and 300x larger than many of the bigger pumping coins) has continued to decline dramatically relative to BTC, offsetting the rise of these smaller coins, and keeping BTC market dominance high. Eth may continue to decline another 10% relative to BTC.
Anyway, it seems BTC is likely to experience a ~35% correction soon. Altcoins should decline more than BTC, especially the high-flying ones. And thus it appears possible that BTC dominance may reach the target lvl.
See my linked idea for BTC decline
Anyway, it seems BTC is likely to experience a ~35% correction soon. Altcoins should decline more than BTC, especially the high-flying ones. And thus it appears possible that BTC dominance may reach the target lvl.
See my linked idea for BTC decline
Trade closed manually:
Let's recap where we are (see linked idea):
The larger blue trend was strong enough to break the smaller green trend up top, fueling the move to the smaller blue trend. It was not, however strong enough to break this trend (as I expected it would), and BTC immediately sold off to the solid yellow line (as described). This sent it back to the dashed yellow line (as described). However, a new (orange) trend was created in this process which (along with fairly certain rejection of the dashed yellow line) has caused a further decline to the first possible target (not mentioned in my above analysis) of roughly 50K.
Given the volume coming in and buying this dip, plus the rapidity with which the move occurred--I was expecting reaching a bit higher which would have resulted in a bigger panic...I'm closing this trade in a profit. I thing this correction will be contained to the first target zone--if not the 50K level
The larger blue trend was strong enough to break the smaller green trend up top, fueling the move to the smaller blue trend. It was not, however strong enough to break this trend (as I expected it would), and BTC immediately sold off to the solid yellow line (as described). This sent it back to the dashed yellow line (as described). However, a new (orange) trend was created in this process which (along with fairly certain rejection of the dashed yellow line) has caused a further decline to the first possible target (not mentioned in my above analysis) of roughly 50K.
Given the volume coming in and buying this dip, plus the rapidity with which the move occurred--I was expecting reaching a bit higher which would have resulted in a bigger panic...I'm closing this trade in a profit. I thing this correction will be contained to the first target zone--if not the 50K level
Comment:
Given the larger declines probably won't materialize, I no longer expect dominance to increase so dramatically
