Bitcoin (BTC / USD) Dominance Bounces - Are Alcoins Dangerous?

If Dominance drops, will point 60 be the turning point for an AllSeason?

I will analyze the dominance of bitcoin after 2 months, with elliot waves to be able to estimate how far it could fall.

Let's see

If the dominance of Bitcoin falls, it means that you are investing in Alcoins.

As we saw in recent months, the price of Bitcoin has entered a descending channel, after exiting its bullish channel

Weekly analysis

Bitcoin's dominance has been moving for months within a descending side channel.

Bitcoin's dominance in recent weeks is below 63 points, which is good for Alcoins.

In the last week it has rebounded, at 60 points.

Daily analysis

In the last days it is testing the upper limit of the descending channel

If we analyze with elliot waves we can identify a reverse ABC, where ABC could be formed. Where C would reach 60 points

This would indicate that now the dominance of Bitcoin will rise and the alcoins are in danger?

Why is it important that the domain goes down?

Because reducing the dominance of Bitcoin would indicate that the prices of cryptocurrencies with good projects and good volume could continue to recover value

The variation in recent days means that investors have sold Bitcoin, the volume has decreased.
Investors are withdrawing the gains from Bitcoin, but more have withdrawn from Alcoins, so we see a recovery in dominance and a decline in Alcoins.

In the next few days we could see the descending channel continue, marking a double bottom, validating the support of 60 points.

Key points

• Halving. The Bitcoin halving has already occurred, according to history, weeks after the price began a bullish recovery. In the long term, there have been increases in the price of Bitcoin sometimes accompanied by Alcoins and sometimes not.

• The volume of the Bitcoin domain has remained with a ceiling in recent weeks, going down in recent days

• Continued dominance by the descending channel and could form a double bottom

• If we break 60 points, we could see a general rise in Alcoins

We have several possibilities to explore the price of Bitcoin and how dominance would affect Alcoins

Minor price corrections or increases in Bitcoin

• If the dominance of bitcoin continues to decline due to a slight price correction, after which it lateralizes the value of bitcoin, which it has done in recent weeks, it would be good for alcoins.

Continuing along the descending channel would be good for alcoins, dominance would continue to decline, allowing some alcoins to rebuild their prices.

We should continue this trend if the intention of large investors is to take positions in alcoins in the face of a possible bull market for cryptocurrencies in the coming years.

• Strong increases or strong corrections, in the price of Bitcoin

Bitcon's dominance is key, facing a rapid rise in the price of Bitcoin can trigger a surge in dominance and lower the price of alcoins (investors take liquidity from alcoins to increase the price of Bitcoin).

A big rise in the price of Bitcoin would increase its dominance and reduce liquidity of the alcoins if no new capital enters the cryptocurrency market

May lower the price of bitcoin (strong correction) and increase dominance, investors take refuge in Bitcoin by selling their alcoins

• A large downward correction in the price of Bitcoin with a large candle could damage the entire cryptocurrency market, seeing a general drop in prices. With months of recovery as we have already seen

Conclusion

For now we see slight corrections or increases in the price of bitcoin that are being accompanied by larger increases in Alcoins.

The dominance is in values ​​that could indicate a general rise in Alcoins (allSeason) if it breaks 60 points.
On the other hand, if it breaks the descending channel, it could form another laterally, allowing the price of Alcoins to continue to rebuild.
New capital must enter the cryptocurrency market to continue in this cycle, otherwise a strong rise in the price of Bitcoin will detract liquidity from the Alcoins

World Context

But the world crisis that broke out a few months ago continues, it seems that the markets will continue to rise due to the injection of money from their countries.
The economic crisis will continue, but the financial crisis does not seem to exist. Except in highly indebted countries.
Cryptocurrencies seem to be a haven of value, given this situation, increasingly used, in an uncertain future.

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Protect your assets use Stop loss

The alcoins market is very dependent on the price of Bitcoin, when Bitcoins goes up the alcoins go up more, but also in the other sense, so I suggest that you periodically review a Bitcoin and use stop loss and move it when they are already in profit. Do not let a profit become a loss.

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READ DISCLAIMER: this publication / analysis is only for general information purposes. I am not a professional trader and I will never be a financial advisor. The material in this publication does not constitute any trading advice of any kind. This is the way I see the paintings and what my ideas are.
Perform your own analysis before making an investment decision. Use money that you are willing to lose if you make an investment.
If you make exchanges or investments after reading this publication, it is entirely at your own risk. I am not responsible for any of your gains or losses. By reading this publication, you acknowledge and agree that you will never hold me liable for any of your profits or losses.

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