Finally Bitcoin broke the key 55555 Level. While Bitcoin breaking this level is not much of a news considering we expected this scenario to play out at some stage. Big news at the moment is however, Bitcoin’s dominance vs Altcoins. There is a huge buying interest in Bitcoin at the moment and that is coming at the cost of Alt coins. Altcoins are getting crushed across the board against Bitcoin. Lets review Bitcoin Levels
Bitcoin & Dominance Levels to Watch
While the whole world wants Bitcoin above 100K, i want to go one step at a time. Lets focus on immediate Levels. 59500-63000 is next Major Resistance Zone. Lets focus on these areas first. Can we get past the ATH in one go ? Or we will get a meaningful pullback before the ATH is broken ? Or a scenario where ATH Zone acts as a firm Resistance and we dump back again below 40K & even possibly 30K ? For me all scenarios are on the cards until ATH is broken. For now I will book profits around the Resistance. Off course i will buy back as soon as i see ATH breakout clues.
Bitcoin Dominance is showing plenty of strength. What does that mean for ALTs. If the trend continues like this, that means BLOODBATH for Alts in short term. Most BTC paired ALTs are losing ground to Bitcoin barring few. FTM is holding its ground and DYDX is trying a counter trend against Bitcoin’s Dominance. ONE is another one trying to hold some ground. But most others are clearly perishing against Bitcoin.
How to Play ALTs if Bitcoin’s Dominance continues to rise?
Typically bitcoin dominance gets some pullback even during a rising trend, which means some relief rally for ALTs and some breather for Bitcoin’s uptrend. If we get any such rally, its best to close BTC pairs and wait for Bitcoin’s dominance direction. While this is true for Shitcoins, we may continue to load good volume mid cap ALTs. We are watching HBAR, SOL, ETH against Bitcoin.
What if Bitcoin breaks ATH Big Time? Bloodbath for ALTs to continue ?
The Buy side pressure on Bitcoin is greater than any other coin at the moment. Looking at the amount of cash available in the market at the moment, Bitcoin is poised for some explosive moves if we break ATH conclusively. If that happens in parallel with Bitcoin’s Dominance, we are looking for huge bump on the dominance side, which surely means Bloodbath across the board for ALTcoins. We are staying away from most Altcoins barring few that are still showing good strength against Bitcoin. We will reenter ALTs only when we see a clear meaningful shift in the Dominance Trend. Now that doesn’t mean everything will dump one sided. We may still get decent moves in between for ALTs even if they want to die eventually.
Also we will not generalize all ALTs as one. We will continue to watch new breakouts and emerging trends and may still take ALTs positions selectively.
How to Play Current Markets ?
If you are long Bitcoin, you are already doing good. If you missed Bitcoin entry, we may get some shallow pullbacks if 59500-63000 Zone holds as a resistance. We may book profits around 63000-65000 if that area becomes a resistance for now. If we break that, we will rebuy and look to add more on dips. If the ATH acts as a double top and resistance, we may consider other scenarios too but lets first get there and see how the price action evolves. We will be loading selective ALTs on larger dips if Bitcoin dominance continues its upward trajectory. ETH, HBAR, FTT & SOL are prime candidates for now, we may expand the list later
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