Bitcoin Dominance Dropping – The Alts are Grateful
For the first time in quite a few days, we can see some life in the T-25 Coins. Their reaction to the resistance found on Bitcoin Dominance is a few days delayed but when you are dealing with thousands of projects that all demand some kind of Supply and Demand then we can expect some delays.
We have spoken about Dominance before, so we won’t go into full detail here but today is the 3rd red day for Dominance in a row. The initial rejection came from a trendline 3 days ago after a steady rise of 16.26% from a multi-year low.
As you will see from the pictures below, Dominance does have two potential areas of Support below the current 44.78% level. One of which we are testing now while the other sits further down between 41.5 and 42%.
Is Bitcoin Sideways?
The SHORT answer is No. Bitcoin is still very much trending upwards on the Daily Resolution. This can be seen in the picture below. Also in the picture below you will notice two moving averages; the RED = 50 EMA and the GREEN = 200 EMA. The first chart is on the Daily Resolution.
Generally speaking, if the price is above both the 50 and the 200 on the Daily and they are both sloped upwards, then you are still trending North.
In the second picture above we can see the Hourly Resolution for Bitcoin. Here we can see that the price is clearly trending upwards as a whole but there are short stretches where the price will consolidate and go sideways before breaking a previous local high to extend the trend.
Notice how well the 50 and the 200 are providing Support for Bitcoin even on the Hourly timeframe. Moving Averages are a really good way to find potential Support and Resistance, on all assets and on all timeframes. You just need to learn what Averages and what timeframes to better understand how to use them for entries and exits. We cover Moving Averages in good detail in our L3 – Intermediate or Jr. High School. Be sure to check that out if Moving Averages sounds interesting to you.
Any ALTS Worth Watching?
Polkadot is an open-source sharding multichain protocol that facilitates the cross-chain transfer of any data or asset types, not just tokens, thereby making a wide range of blockchains interoperable with each other.
This interoperability seeks to establish a fully decentralized and private web, controlled by its users, and simplify the creation of new applications, institutions and services.
SafePal is a cryptocurrency wallet launched in 2018 that helps users to protect and grow their digital assets. SafePal provides hardware and software wallets, all paired and managed through the SafePal App and was the first hardware wallet invested in and backed by Binance.
ARPA is a blockchain-based layer 2 solution for privacy-preserving computation, enabled by Multi-Party Computation (“MPC”). Founded in April 2018, the goal of ARPA is to separate data utility from ownership and enable data renting. ARPA’s MPC protocol creates ways for multiple entities to collaboratively analyze data and extract data synergies while keeping each party’s data input private and secure.
DOT put in a solid 18% candle yesterday and broke its high from September 14th. This was a strong move and shows that Buyers may be interested in retesting the ATH from mid-May.
There is a chance we see a downward move back to the previous high in an effort to retest support and allow some more traders to reload their positions.
SFP put in a 176% candle yesterday. The crazy thing is, it may not even be done. SFP has a long way to go before testing its ATH but it has a huge way to drop if it plans to retest Support.
These types of candles are very hard to predict. Buying the dips on this one can lead to a mountain of red before the actual continuation – if any. At the same time, a move like that may only give you very shallow pullbacks while continuing to climb.
Very good for Scalpers and low timeframe intra-day traders but stay away unless you know how to play this.
ARPA has broken its ATH and could be well on her way to reaching $0.22 which is considered Price Discovery Resistance.
A Move to $0.22 would be about a 50% move up from where it sits at the moment.
The Break was clean and we did get a retest of the trend a few days back. This helps to paint a picture of a very strong trending coin.