In our previous analysis, we observed that both the major support and resistance levels remain operative. Presently, Bitcoin is in a consolidation phase in the short term.
Taking a look at the 4-hour chart, we can note that Bitcoin has been on a downward trajectory since its peak at $31,000. The 55-period moving average constitutes a key resistance level, currently pegged at $27,042.
Source: Tradingview
Turning our focus to the daily chart, we find that the 89-period moving average stands as the principal support level, situated currently at $26,780.
Impending Altcoin Season
The BTC dominance chart presents an intriguing scenario – it appears to be forming a diamond top pattern. This pattern typically indicates an imminent, significant downtrend. In layman’s terms, we can infer that altcoins, especially those paired with Bitcoin like ADA/BTC and LINK/BTC, may outperform Bitcoin in the near future.
Bitcoin has had a favorable year in 2021 but the altcoins have dominated the market. The advent of the alt seasons this year had seen multiple altcoins rally towards new highs even when market-mover bitcoin had remained stagnant at times. This move, coupled with the growth and adoption that rocked the crypto space this year, has proven that the altcoins dominated the market on a large scale.
Altcoins Rule 2021
So many new things came out of the altcoin industry this year and have found success at the same time. Basically, the year 2021 has been one long alt season when we look at the performance of some of these assets.
Related Reading | The Year In Review: An Emotional Rollercoaster For Crypto Investors
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A lot of this growth has been driven by decentralized finance (DeFi), NFTs, and most recently, the metaverse gaining popularity among investors. These have brought to the forefront some interesting projects that have had their tokens rally because of it. Most of the time, they followed the growth of bitcoin. While at other times, these assets broke free and rallied on their own accord.
Altcoins market cap at $1.32 trillion | Source: Altcoins Total Market Cap on TradingView.com
This has led to bitcoin losing a significant portion of its market dominance to altcoins. Starting the year out at about 75% of total market dominance, it has now fallen to 38% where altcoins have continuously eaten into the pioneer cryptocurrency’s market share. Ethereum was, as always, leading this charge as it took the largest chunk of the market share.
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Memecoins also found favor in the market this year. Coins like Dogecoin and Shiba Inu grew into the thousand and million percentile, as well as “ETH killers” also making a play in the market.
Mid-Caps Take The Lead
Altcoins always showed out in the indexes with triple-digit gains for the year. Bitcoin which had a tremendous run of it this year still recorded the lowest gains being the only index that returned double-digit gains. All other indexes, the small, mid, and large cap indexes enjoyed the majority of the gains.
Bitcoin’s returns for the year only came out to 73%. While this is still vastly ahead of top investment vehicles like gold, the S&P, and NASDAQ, it still performed poorly in comparison to the other indexes.
Mid Cap Index records highest returns of 2021 | Source: Arcane Research
The Large Cap Index saw the second-lowest returns with 179%, but even it saw returns over 100% higher than that of bitcoin. The Small Cap Index made a splash with returns reaching as high as 485% for the year.
Finally, the Mid Cap Index came out as the winner for 2021 marking returns of 830%. This index consists mostly of Layer 1 tokens which had seen some of the most gains for the year, outperforming even ethereum despite its massive 485% returns for the year.
Featured image from Investment U, charts from Arcane Research and TradingView.com
It’s official, this was Binance Coin’s year. There are no two ways about it, BNB crushed it throughout 2021 and cemented itself as the third more popular coin in the world by market capitalization. Not a small feat, considering the phenomenal year that altcoins had. Several coins had their moment in the sun, capturing capital, headlines, and attention. No one got near Binance Coin, though.
Binance Coin's stellar performance | Source: The Weekly Update
According toArcane Research’s The Weekly Update:
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“Bitcoin may have beaten the stock market in 2021, but it has been left in the dust by other cryptocurrencies. Binance Coin (BNB) is the best performer of the three biggest cryptocurrencies by market cap, with a 1344% gain. The Binance Smart Chain ecosystem has seen massive growth in 2021, taking some market share from Ethereum.”
That’s why they dubbed Binance Coin as “the winner of 2021,” and their point is well taken. However, there’s more to the story. Binance as a company was in hot water for a while there. And their own validators blasted the Binance Smart Chain, saying things like, “There doesn’t appear to be any reasonable testing process in place. Every update appears to make things worse.”
Let’s explore the Binance Coin ecosystem’s tumultuous year.
Big Projects Decided To Operate On The Binance Smart Chain
There’s no denying it. As The Weekly Update says, “Ethereum has lost its indisputable position as the “one and only” smart contract platform.” And Binance has a lot to do with that. A controversial project from the start, the Binance Smart Chain has been dubbed a centralized Ethereum clone. And they have a point. However, even though the Binance team did fork Ethereum’s code, they were always upfront with the direction of the project.
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In BSC’s documentation, the team shamelessly claims that the “Binance Smart Chain uses a consensus model called Proof of Staked Authority (PoSA). (…) This consensus model can support a short block time and low fees, and it only requires 21 validators to run.” Contrast that with the 11.000 nodes that reportedly support the Ethereum ecosystem.
Also,their plan workedand projects flocked to it:
“Binance Smart Chain was developed explicitly to solve Ethereum’s rising gas fees and offers faster, scalable, and cheaper transactions. In the past, several alternative blockchains have tried to become ‘Ethereum Killers’ but couldn’t succeed in capturing new project’s interest. However, Binance Smart Chain is hosting numerous blockchain, Defi, and crypto projects.”
Problems And Connection To The Binance Coin
However, as in Ethereum’s case, success came with scalability problems. A set ofvalidators took to GitHubto raise concerns about the state of the network and how running a complete node’s cost has increased tremendously. “There is no code review, patches are simply committed, in most cases even without a proper description of what they do or what problem they try to solve,” the original poster said.
“I’ve rarely seen something handled so unprofessionally,” the OP accused. “I have many full nodes running there and now all of them are unable to sync. Each of these servers costs me $800 per month (previously only $200), then you told me that I need faster bandwidth and disk which means the cost will keep rising,” a commenter claimed.
What does this have to do with the Binance Coin? Everything. As the native currency of the Binance ecosystem, BNB’s success is tied to the success of the whole network. Binance is still doing amazing, but, can Binance Coin holders count on that to be the case in 2022?
BNB price chart for 12/29/2021 on Binance US | Source: BNB/USD on TradingView.com
Make No Mistake, Binance Coin Won 2021
It was an action-packed year, but Binance Coin rose to the test. Besides the validators uprising, the Binance team took care of theseflash loan hacksand kept BNB’s price rising throughout the year. When CZ himself called forother entrepreneurs to create their own coins, NewsBTCwas the voice of reason:
“Binance is not only the biggest exchange in the world; it also has the most activities, features, things to do. BNB powers all of that. How many coins support that huge of an ecosystem? How many coins have that many use cases? And yes, BNB provides its user with superpowers while in the Binance ecosystem and helps them save money. How many other coins can do something similar?”
Let’s not kid ourselves, the Binance Coin AKA BNB is a unicorn. A one-of-a-kind project that did many things right and rewarded the early believers with a phenomenal year. A 1344% increase in price is not something we see every day. Congratulations to Binance Coin for owning 2021.
Featured Image: Foundry on Pixabay | Charts by TradingView & The Weekly Update
Bitcoin price is only striking distance away from potentially setting a new all-time high, or only about a 15% move higher for the new record to be set. As the top-ranked cryptocurrency surprisingly weathers the macro turmoil as of late, altcoins have suffered dramatically and for the most part bled while BTC has been rising.
Alt investors are capitulating, and moving their capital into BTC as to not miss the coming last leg up. But what exactly does this mean for the ongoing altcoin season? Is it over? Or will there be another leg up like there could be in Bitcoin – a move that is becoming increasingly clear by the day?
Alt Season, Bitcoin Dominance, And The Theory Of Five Waves Down
Bitcoin and altcoins have a very unusual relationship, despite being assets of the same class. Top traders such as Nik Patel have spent years working to understand the strange, cyclical behavior between BTC and alts, and have found some success.
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After such an explosive altcoin season, the market is convinced that the music has already stopped, asset prices have topped out, and have started to reallocate heavily into the strength of BTC.
Related Reading | How 90-Year Old Market Wizardry Predicted The Bitcoin Breakout
But much like Bitcoin’s recent pullback is close to proving to be little more than a massive bull market shakeout, due to the relationship between alts and BTC, this divergence between the two types of crypto assets could be a similar shakeout.
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BTC dominance suggests another wave down. | Source: CRYPTOCAP-BTC.D on TradingView.com
Many analysts, such as Elliott Wave International’s Tony Carrion, subscribe to the idea that BTC is about to enter a wave five impulse against the dollar. That would suggest that BTC just completed a wave four, which in the end was a big bear trap. But what if alts are close to finishing a wave four against BTC, with another wave to follow? That’s exactly the picture BTC dominance tells.
Comparing the total altcoin market cap sans BTC against the king itself, shows that alts might shockingly be undervalued by comparison. A similar shakeout in momentum can be seen during the last cycle using the LMACD, pictured below.
Alts are lagging behind BTC in valuation comparatively. | Source: CRYPTOCAP-TOTAL2 on TradingView.com
Which Altcoin Will Survive Best Against BTC When Retail Returns?
Looking at the total crypto market cap and comparing it against Bitcoin price, there are some similarities between the two potential points highlighted by an ascending triangle. The bullish chart pattern if valid would result in a similar up move – taking the cycle to its climax in both Bitcoin and altcoins.
An ascending triangle fractal could launch alts to new highs. | Source: CRYPTOCAP-TOTAL on TradingView.com
With so many altcoins having already performed so well, capital very well could flow into other lagging coins, leading to underperformance in alts that have previously done well.
Related Reading | Astro Crypto: Summer Bitcoin Slump Could Bring Bountiful Fall Harvest
For example, during the last cycle, although both BTC and ETH went on to new highs, it was Litecoin and XRP that performed the best during the last leg up.
Both assets were well below the triangle consolidation during the last cycle, and once again have found themselves lagging severely behind. Is this time different? Not much has changed from cycle to cycle.
Underperforming altcoins could perform the best in the next wave | Source: CRYPTOCAP-TOTAL on TradingView.com
The direction of BTC dominance can be deceiving, as the direction of the chart is down when altcoins are doing well. The rest of the charts, which use the same assets in unique juxtapositions, make for a more compelling argument as to why altcoin season has barely even started yet. And the current divergence between BTC and alts is possible the same type of a shakeout that most of the market just fell for in the BTCUSD trading pair.
The psychology behind this expectation, is that the market has realized it was wrong about BTC, and is selling USD, alts, anything to get back into position. When Bitcoin gets back to new all-time highs and attracts more attention to the market, newcomers will go to alts and not BTC.
The higher the top-ranked cryptocurrency gets toward $100,000 and more, the less likely anyone but institutions or the extremely wealthy can afford it. Altcoins will be the next best bet – especially ones that have no sellers remaining such as those that have underperformed thus far.
This is the best alpha I can offer regarding the future of #Bitcoin price. I do not think we see a lower low, regardless of if we continue to correct. Bears will not get their win before bulls get $100K. All info pulled directly from the source: https://t.co/BhmNxjeE4I pic.twitter.com/WU6snm9aCu
— Tony “The Bull” Spilotro (@tonyspilotroBTC) September 23, 2021
Follow@TonySpilotroBTC on Twitteror viathe TonyTradesBTC Telegram. Content is educational and should not be considered investment advice.
Featured image from iStockPhoto, Charts from TradingView.com
Popular crypto strategist Nicholas Merten is not convinced the crypto markets are primed to top out in 2021.
The trader tells his 470,000 YouTube subscribers that other crypto enthusiasts believe the current cycle will end soon, with Bitcoin (BTC) rallying all the way to $100,000 by the end of the year.
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The top crypto asset by market cap is trading at $45,261.73 at time of writing and is down 14% in the past week, according to CoinGecko.
Merten, however, argues that market cycles are “maturing and lengthening,” predicting the current cycle to last until November or December of 2022 at the earliest.
“I think that’s a very reasonable way to play it, and that’s calling for a $10 trillion market cap – a 5x from here. I think that’s a pretty nice ask in that case, and it’s a reasonable amount of time for this new valuation increase as crypto really hits the mainstream and gets institutions on board.”
The total crypto market cap is $2.15 trillion at time of writing, according to CoinGecko. If Bitcoin’s market share in the crypto space remains constant, a 5x increase could mean that the top cryptocurrency can surge above $200,000 by late next year.
Merten also predicts the total market cap will pick up some momentum in the “coming months” since crypto is “in the full swing of the bull market.”
“The important thing is altcoin market cap is up… this to me is a guarantee that we are not in a bear market now. It’s altcoin dominance.”
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Featured Image: Shutterstock/Nithid/Vladimir Sazonov
Bitcoin price is struggling to break through resistance at $50,000, and it could partially be altcoins to blame for the weakness. The most recent technical structure on the highest time frames suggests that not only could alts continue to gain against BTC dominance, altcoin season itself could last a while longer.
Bitcoin Dominance And Technical Analysis Using The Metric
Technical analysis is a subjective art. The practice has enough naysayers as is, but even those that subscribe to the study don’t always believe that all charts are created equally.
For example, there are several industry vets that do not believe BTC dominance – a metric that weighs Bitcoin against the rest of the crypto space in terms of market share – has value as part of crypto analysis.
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Related Reading | Total Crypto Market Cap Reenters Monthly RSI Bull Zone
If Ethereum outperforms Bitcoin, for example, dominance might dip as a result. The magnitude of this is enhanced further due to the sheer volume of unique altcoins that exist today. Some even argue that the metric itself was once useful, but less so due to dominance not including the vast world of NFTs or the constant sea of new DeFi projects springing up.
For those that are believers, the recent altcoin season could have been predicted with some degree of accuracy. And if the metric continues to hold weight, altcoin season might have another few months left.
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Could altcoins beat Bitcoin at its own game a while longer? | Source: CRYPTOCAP-BTC.D on TradingView.com
Why Altcoins Season Could Last Several Months Longer
BTC dominance has established a massive trading range between 70% and 38% dominance. While altcoin sentiment was at its worst compared to Bitcoin, the range failed to break to the upside, resulting in a swing to the lower boundary of the trading range.
BTC.D stopped short of touching the previous bottom, but is following a pattern from the last cycle that suggests not only will the lower boundary be touched, lows will be swept and perhaps a new range reached.
Related Reading | New To Bitcoin? Learn To Trade Crypto With The NewsBTC Trading Course
Technicals also support a fall into the bear zone – or oversold levels – on the Relative Strength Index. The total crypto market cap has also reentered the bull zone on the RSI, all while Bitcoin struggles with resistance.
The LMACD is still fully red on the histogram and not nearly at the depths, lengths, or oversold levels as the last market cycle. All of the signals combined suggest that altcoins are likely to outperform Bitcoin for another few months.
A monthly candle close below the trading range highlighted in the chart above might be the exit signal that altcoin season is over, and putting any crypto capital back into BTC might become the more profitable venture again. Before it happens, there could be extreme volatility on the dominance chart in a battle that’s brewing between Bitcoin and altcoins.
Follow@TonySpilotroBTC on Twitteror viathe TonyTradesBTC Telegram. Content is educational and should not be considered investment advice.
Featured image from iStockPhoto, Charts from TradingView.com
Cryptocurrency trader Michaël van de Poppe is analyzing Bitcoin and three altcoins that he says could potentially rally.
In the case of Bitcoin (BTC), Van de Poppe tells his 114,000 YouTube subscribers that the flagship cryptocurrency is trading in a range on the lower time frames.
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“Looking at Bitcoin and the lower time frames, we can see that we’re still chopping around. So the critical support that we’re looking at with Bitcoin is still the area between $44,000 to $44,400.”
The crypto trader says that if this support level for Bitcoin gives in, BTC could re-test previous lows before starting to climb.
“Weare not really falling through, meaning rejection. And then usually you will get a re-test of the lows, another lower high and then we start to fall through. At this stage, we make a lot [sic] higher low on the lower time frames, through which we potentially make a squeeze before we break back up.”
Van de Poppe also says that if his outlined scenario occurs, the altcoin season could kick off and send altcoins rallying.
“If this is going to happen, altcoins will most likely start shooting off, especially given the fact that Bitcoin will be showing strength.”
The analyst believes that the altcoin season typically begins under specific conditions.
“The actual alt season starts when Bitcoin is bottomed out, Bitcoin is grinding up, and when nobody is interested in altcoins at all.”
Van de Poppe also offers an alternative scenario in which Bitcoin breaks below the current support level.
“If we do reject here, the level to watch is the area at $43,000 and $40,000.”
The crypto analyst also takes a look at Litecoin (LTC). He says that if Litecoin’s current support level at around $165 holds, the next price target could be above $200.
“We are making a slightly higher low, so this is the critical breaker here [$165 support level] for Litecoin. And if that is the case, we can continue making higher highs, higher lows, in which the trend continues to go. And then we can start targeting 220 bucks as the next level for Litecoin.”
At time of writing, Litecoin is trading at $175.58 per CoinGecko.
Next up is the native token of crypto debit card issuer Swipe (SXP). Looking at the SXP/BTC pair, Van de Poppe says that Swipe could rally after breaking above the 100- and 200-day moving average (MA) indicators.
“If we’re looking at Swipe, for instance, we can say the exact same. The good part is it actually broke back above the 100-day and 200-day MA, implying that a new bull run can be happening.”
Finally, Van de Poppe analyzes the scaling solution Celer Network (CELR) in its Bitcoin pair. The trader says that CELR could rally after breaking above the moving averages and re-testing support levels.
“We can see the same about CELR – breaking back above those moving averages. But more importantly, re-test level here [0.00000063 BTC, or $0.02 at time of writing] for support after the big impulse wave, through which it is ready for a new impulse wave to be happening.”
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Today, that precedent has been shattered – Vitalik has proven that he has no qualms about selling off his ‘burned coins.’
A Wave of Sell-Offs Across Altcoins
Several small-cap altcoins followed suit after Vitalik dropped his bags – across the board, dog-related altcoins plummeted. SHIB was in freefall on Binance Futures, and KUMA (deployed by the SHIB contract owner) fell over 95% within mere minutes.
After the market-shaking event, Vitalik began making a string of huge donations. He sent over $1B in SHIB to the India Covid-Crypto Relief fund and made several other large donations to organizations such as GiveWell and Charter Cities Institute.
A bit of a backstory: many of the developers of the Dogecoin clones sent the majority of the coin’s circulating supply to Buterin’s public address as a “proof of burn,” banking on the fact that he wouldn’t dump them. Well, they were wrong.
This is how the aftermath looks like:
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The Internet’s Reaction
The rise of meme coins during the past few weeks has been stunning to behold – Vitalik’s decision to market dump his coins has proven to be extremely polarizing.
One crowd of people championed Vitalik as the bastion of free-market principles, noting how greedy traders looking to make quick money in the markets got what was coming to them. Effectively, Vitalik took massive amounts of those gains back and put them straight into the hands of charities that will doubtless save thousands of lives. More conservative traders are pleased to see that ultra-risky bets don’t always play out as planned.
On the other hand, swaths of new cryptocurrency traders are enraged at Vitalik’s move that they view as an act of bad faith (seeing that the coins were supposed to be ‘burned,’ and Vitalik ‘should have respected that’).
Traders have lost billions in unrealized gains – one even spent $1.6K in gas to create an ERC-20 token called “F*** Vitalik Buterin.” One thing is certain – projects probably won’t be using Vitalik’s address as a burn wallet ever again.
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This week we saw altcoins taking for the skies as Bitcoin was rangebound. This led to a plummeting BTC dominance that hit a 2-year low.
Bitcoin was trading slightly below $60K this time last week, and everyone had their hopes up that it would conquer this coveted level. Unfortunately, last Saturday, the price started showing signs of weakness, and it declined all the way to $57K on Sunday.
From there, Bitcoin started trading flat and made another unsuccessful attempt at $60K on Monday. Bulls didn’t have it in them, though, and as the week went by, the price remained indecisive. This led to a serious drop on Wednesday, which saw BTC going down to almost $55K and leaving billions worth of liquidations across the board.
Nevertheless, the bulls regrouped and started pushing the price back up to bring it to where it currently trades at around $58K. All of this indecisiveness, however, saw its dominance decrease to 55%, leaving altcoins a lot of room to breathe.
And breathe, they did. Ethereum, as well as Binance Coin, charted fresh all-time highs, while Ripple’s XRP finally came out of its shell and spiked above $1 to paint a new three-year high. This happened despite the ongoing SEC clash.
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Altcoins are popping across the board, with many mid- and small-cap cryptocurrencies charting double- and even triple-digit increases. This was the case with WazirX, which soared by more than 1,000% and painted a fresh ATH. All in all, the booming altcoins drove the total crypto market cap above $2 trillion for the first time.
In any case, it was definitely a good week for the entire cryptocurrency market. America’s second-oldest bank, State Street, announced it would also enable cryptocurrency trading on its platform, while BNY Mellon revealed they would be a service provider for SkyBridge’s Bitcoin ETF, should it be approved.
With institutional adoption of Bitcoin continuing to increase and its rangebound trading, the chances are that we are in for a huge move that might come quicker than everyone expects.
America’s Second-Oldest Bank State Street to Enable Crypto Trading on its Platform. The second-oldest US financial service and banking organization State Street Corporation has announced its plans to enable cryptocurrency trading using its infrastructure. This comes as an additional push towards institutional adoption.
BNY Mellon to Become Service Provider for SkyBridge Bitcoin ETF. BNY Melon has revealed that it will become a service provider for SkyBridge’s Bitcoin ETF. Of course, before this happens, the ETF would first have to receive the official approval of the United States Securities and Exchange Commission.
Seven-Time Super Bowl Champion Tom Brady to Release an NFT Platform. Tom Brady, one of the biggest names in the US NFL, as well as a seven-time Super Bowl champion, plans to launch an NFT platform this spring. This comes as the nascent field of non-fungible tokens continues to boom.
Demand for Bitcoin Increases Despite Regulatory Restrictions: Goldman Sachs CEO. The CEO of Goldman Sachs, David Solomon, said that the demand for Bitcoin continues to increase despite the regulatory restrictions. The bank also said that it continues to support its clients’ needs when it comes to cryptocurrency exposure.
Coinbase Reports Record-Breaking Q1 With $1.8 Billion in Revenue Ahead of IPO. The leading US-based cryptocurrency exchange, Coinbase, revealed that its first quarter of this year has been record-breaking. It reported a revenue of around $1.8 billion while the trading volume increased by more than 300%.
Binance Smart Chain Daily Transactions 200% More Than Ethereum’s. The Binance Smart Chain continues to expand. In fact, it appears that Ethereum has a serious competitor in its face because BSC saw an all-time high of daily transactions, which are currently more than 200% than those on ETH.
Charts
This week we have a chart analysis of Bitcoin, Ethereum, Ripple, Binance Coin, and Cardano – click here for the full price analysis.
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Bitcoin price is diving currently, shaking up the crypto market as a whole. In addition to the correction in the top cryptocurrency by market cap, altcoins have taken an even more severe beating.
With top alts like Ethereum and Litecoin are seeing an even further drop on BTC trading pairs, Bitcoin dominance has formed a bullish engulfing candle just as a key technical indicator reach overheated status. Here’s how that could put an abrupt end to the ongoing altcoin season.
Bitcoin Price Drop Causes Altcoins To Flop
Bitcoin is the first ever cryptocurrency that an entire industry was built from since, and anything that isn’t BTC is considered an altcoin. Ethereum is currently the king of that camp, and is outpacing Bitcoin in performance since its inception.
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But due to first move advantage and just how dominant Bitcoin is, it represents more than 50% of the entire crypto market cap. The BTC dominance metric was created to measure the rest of the crypto market and its weight compared to all altcoins.
Related Reading | Following Bitcoin “Reset,” It’s “Off To The Races Again”
BTC dominance has dropped by 18% since end of 2020 highs, leaving a red streak behind. However, during today’s crypto market bloodbath, the metric began to make a comeback and has formed a bullish engulfing candle.
A bullish engulfing candle is a type of Japanese candlestick formation, that typically suggests a short term reversal is in the coming. It forms when after a sharp bearish move, sellers are overwhelmed by a sudden surge in bullish buying. It is then up to bulls to continue the reversal.
A bullish engulfing appears as daily RSI reached oversold conditions | Source: CRYPTOCAP-BTC.D on TradingView.com
BTC Dominance Reversal Could Put An End To Alt Season
Coinciding with the bullish engulfing candle pictured above, the daily Relative Strength Index fell sharply into oversold territory. If a reversal plays out in BTC dominance, whatever altcoin season that’s been going on recently, will be over.
Adding more credence to the theory of further reversal in the relationship between Bitcoin and altcoins, on weekly timeframes a hidden bullish divergence has formed, just as BTC.D touches down at the bottom Bollinger Band.
A bull div on the RSI has formed as dominance falls to Bollinger Band support | Source: CRYPTOCAP-BTC.D on TradingView.com
Divergences occur when price action moves opposite a technical indicator – in this case the Relative Strength Index again on weekly timeframes. Although daily has fallen into completely oversold levels, weekly either has more to go, or buyers are secretly showing up ready to stage a reversal.
Counter Point | Why Bitcoin Dominance Is No Longer Relevant To Crypto
If bulls can begin the comeback starting with a bullish engulfing today, and close out next week with a powerfully bullish move, a morning star doji pattern will be left on weekly charts, adding yet another signal that an extended reversal could result.
Any reversal in BTC.D, could either have Bitcoin leaving alts in its dust, or the coins crash far further than the top cryptocurrency does on its way back down. All that’s left to do, is wait and see.
Featured image from Deposit Photos, Charts from TradingView.com
