BTC dominance TA: Altseason is close

28 Okt 2020

The sentiment in the crypto market is that many altcoins are dying and liquidity is flowing into bitcoin. Now is a great time to switch from bitcoin to altcoins. The bitcoin dominance chart is facing great resistance. At 5 moments in the graph, this level was held as support or resistance. The trend line of a rising bitcoin dominance is common in a bear market. However, we are now in a bull market and have broken this rising trend line. I do not expect a retest of the trendline but a rejection of approximately 63.5 dominance and heading down towards the 0.618 Feb retracement in the macro trend. The rising wedge on the rsi also indicates a reversal and has also encountered resistance. The bitcoin dominance also forms a head and shoulders pattern which is a reversal pattern to the downside. Bitcoin takes time to consolidate after a time of fierce price action before it has the strength to break 13880.