Analysis Bitcoin (BTC) dominance is disappearing, overall market is increasing
Total market capitalization exclusive Bitcoin based on values of Cryptocap and on the basis of the value pair BTC / USD Coinbase shown
Higher highs and higher lows, the Altcoin bulls continue to step on the gas and put Bitcoin in its place. The course continues steeply north, pulverizing the purple resistance area this week. The price runs very bullish above the exponential moving average of the last 10 days (EMA10) (yellow) to the north and is currently already listed in the orange resistance range. If the price also manages to leave this resistance range behind at the end of the day, this activates the cross resistance from the blue horizontal resist and retest of the green upward trend line from below as the price target.
It currently looks like the Altcoin rally is gaining momentum. The same applies here: as long as the price is above the exponential moving average of the last 20 days (EMA20) (red), the chances for higher prices remain good. Only if the EMA20 is undercut at the end of the day would this be a first sign for the Altcoin bulls to check their stop loss levels and adjust them if necessary.
Bitcoin dominance on the basis of values of Cryptocap shown
While it looked like Bitcoin dominance might stabilize in the previous week, the next slump came this week. The price slid below the orange support area at 64.33 percent and is currently trading at 63.80 percent. This means that the predicted target from the previous week , the purple support zone at 63 percentage points, has almost been reached. The delivery pressure currently appears to be considerable. If this support does not stop, cross support from the green downtrend line and light blue horizontal support is expected to start at 61.70 percent. If this level also breaks down on the day view, a test of the area by 60 percent is realistic. The maximum goal on the bottom, however, is the support area from summer 2019 at 57.5 percent.
On the upside, the exponential moving average of the past 10 days (yellow) at 65.03 percent continues to act as relevant resistance. As long as the dominance of the leading currency is below this resistance, the bears are still clearly at an advantage and lower levels of dominance are likely. However, if the bulls make a reversal and the price rises above the 65 percent, the next resistance of the EMA20 (red) at 65.93 percent is a possible consolidation target. It should be noted that the Altcoins continue to outperform Bitcoin and are gradually taking market share from the key currency.
The remarkable increase in total market capitalization in the past seven days has brightened the picture again. Altcoins are currently performing even better than the top dog Bitcoin and are constantly generating new annual highs. However, it remains to be seen how Bitcoin will behave in the coming days as it has worked off the important price target at $ 10,490. If the leading currency also takes this resistance, the price targets on the upside are $ 10,950 and a maximum of $ 11,600. A rise in the direction of these resistances should also continue to spur altcoins and gradually move the capitalization of the overall market towards the 2019 highs.
Disclaimer: The price estimates shown on this page do not represent buy or sell recommendations. They are only an analyst’s assessment.
The chart images were created using TradingView .
Published at Wed, 12 Feb 2020 19:26:44 +0000
