BTC.D a study case - continuation
This is Part II, the continuation of the initial analysis on BTC dominance.
In the previous cycle, BTC dominance peaked at the first retracement derivation of the upward movement after the bottom, following the blow-off top in December 2017.
Evaluating the target of the downward movement after the peak, we can see that the price reaches the second derivation of this movement.
If we try to trace the same retracement of the post-bottom movement following the most recent blow-off top in 2021, we notice that BTC dominance reacted a few days ago at the same level, that is, at the first derivation of this retracement.
We cannot know at this moment if this marks the dominance peak for this cycle; however, for the purposes of this technical analysis, let us assume it does.
If we extrapolate this movement from the previous cycle to this cycle, where might the potential target for the BTC dominance low in this cycle be?
Taking into account the maturation of the cryptoasset market and Bitcoin's importance to the entire market, it is understandable that BTC dominance may not reach new lows. Therefore, it is expected that BTC dominance will not fall below 38%. The target for the two retracement derivations is around the ~42% level.
In the previous cycle, BTC dominance peaked at the first retracement derivation of the upward movement after the bottom, following the blow-off top in December 2017.
Evaluating the target of the downward movement after the peak, we can see that the price reaches the second derivation of this movement.
If we try to trace the same retracement of the post-bottom movement following the most recent blow-off top in 2021, we notice that BTC dominance reacted a few days ago at the same level, that is, at the first derivation of this retracement.
We cannot know at this moment if this marks the dominance peak for this cycle; however, for the purposes of this technical analysis, let us assume it does.
If we extrapolate this movement from the previous cycle to this cycle, where might the potential target for the BTC dominance low in this cycle be?
Taking into account the maturation of the cryptoasset market and Bitcoin's importance to the entire market, it is understandable that BTC dominance may not reach new lows. Therefore, it is expected that BTC dominance will not fall below 38%. The target for the two retracement derivations is around the ~42% level.
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.