Bitcoin Dominance and when to buy/sell Altcoins
Bitcoin: When Dominance Exceeds Important Resistance
Bitcoin dominance has reached an important resistance zone.
Price follows a long-term upward support line.
The indicator is inside a short-term bearish reversal pattern.
On February 15, Bitcoin’s dominance hit a low of 61.78% after a significant decline that started in early January. But then the trend reversed and the dominance level has risen since then, recently testing an important resistance zone..
This resistance is located at the level of 67.5% – for most of March the price is trying to break this mark, but has not yet confirmed its breakdown.
Analyst and trader @Galaxytraging tweeted a BTC dominance level chart showing that the indicator is stuck inside a rising wedge pattern, which is considered a bearish reversal pattern.
Trader predicts that the indicator will make a bearish breakout, as a result of which altcoins will strengthen in pairs with bitcoin.
$ BTC dominance
We all hope for that to happen, so alts have their time again. # Bitcoin #BTC #cryptocurrency #trading #altcoin #alts pic.twitter.com/gVZbvhtZpI
– GalaxyTrading&# 127329; (@GalaxyTraging) March 23, 2020
What awaits level of dominance of bitcoin? Will there be a bearish breakout? Below we will try to answer these questions..
BTC’s dominance level has been within the rising wedge pattern since mid-February. At this stage, you should pay attention to two important factors.
First, support is probably located in the 65.5% area. This month, the price has repeatedly tried to confirm its status, but this happened only on the 20th..
Secondly, the resistance is at 68%. This zone coincides with the rising resistance line of the wedge pattern and the 200-week moving average (MA). Thus, if the indicator breaks through this area, it will be safe to call the current dynamics a bullish trend..
Rising support line
Longer term, the dominance level follows the upward support line over the past 805 days.
In February, the indicator dropped below this line at the moment, but recently recovered and confirmed its relevance.
In case of a higher weekly close, the indicator will simultaneously exceed the 200-day moving average and thereby confirm the presence of an uptrend.
So, the level of dominance of bitcoin has reached a very important resistance zone, and if this area turns into support, the indicator trend will be considered bullish for the foreseeable future..