Bitcoin (BTC / USD) New Bullish Channel: Danger to Alcoins?

Bitcoin's price is undecided, but market dominance and volume may give us some clues.

Let's see

As we see in the chart, I have identified a new bullish channel of Bitcoin's dominance, which could indicate the path that would follow before a long-term bullish cycle starts

A week ago that the Bitcoin Domain remains at low values, after its correction, we will see if this implies good news for Alcoins.

Every time the price of Bitcoin increases rapidly, it affects Dominance and Alcoins

Bitcoin's Dominance for the past few weeks has been receding, trying to break past support on a day-to-day basis, which is good for Alcoins when Dominance is below 68 points.

Two weeks ago we saw a candle with a large wick, which may indicate the entry of investors who initially bought bitcoin and then switched to alcoins

Analyzing the weekly chart, we see that Dominance has broken the MA line of 50 and 21 periods, weekly chart

Keys

Halving. Bitcoin's halving has already occurred, according to the story, samanas after the price has started a bullish recovery. In the long term, there have been increases in the price of Bitcoin sometimes accompanied by Alcoins and other times not.
RSI 1D shows average levels, low average
Bitcoin's dominance volume decreases in recent days.
Bitcoin's dominance in recent days remains at the support of 66 points approx.

The Bitcoin domain is winning the 25 and 50 MA lines of 4 hour periods. This could indicate a consolidation of the trend line and that the correction is complete.

The fluctuation of the Dominion line of the last days means that investors have bought less Bitcoin, we see it in the volume that has decreased, it is waiting for the definition of the price trend.

Why is it important for the domain to go down? Because reducing Bitcoin's dominance would indicate that cryptocurrency prices with good projects and good volume could continue to regain value

In the last days we see that dominance is validating the formation of the ascending channel since it is respecting the bottom line of the channel but does not break it, it is serving as a support

To respect the ascending channel, a good strategy would be to buy alcoins when dominance is at the top of the channel and sell at the bottom. But the limit would be 70 points, above that value the alcoins, we saw the past that investors detach from their alcoins to buy bitcoin.

Let's look at the total volume of the market.

As we see in the graph, the total volume of the market continues to increase in recent weeks but in recent days it has decreased a little due to profit taking.

This indicates that there is a money inflow that is making investments in Bitcoin and Alcoins.

conclusion

Bitcoin's dominance is consolidating and could indicate the beginning of a bullish cycle, while the total volume of the market continues to increase, which means that investments are mainly focused on alcoins but part of it is already destined to invest in bitcoin , good news for good projects

But be careful. Bitcon's dominance is key, in the face of a rapid increase in the price of Bitcoin it can trigger dominance and reduce the price of alcoins (investors take liquidity from alcoins to increase the price of Bitcoin)

We are in key days of a definition of bitcoin price, they are key days, we must be attentive to these graphics.

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Protect your assets use Stop loss

The alcoins market is very dependent on the price of Bitcoin, when Bitcoins goes up the alcoins go up more, but also in the other sense, so I suggest that you periodically review a Bitcoin and use stop loss and move it when they are already in profit. Do not let a profit become a loss.

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READ DISCLAIMER: this publication / analysis is only for general information purposes. I am not a professional trader and I will never be a financial advisor. The material in this publication does not constitute any trading advice of any kind. This is the way I see the paintings and what my ideas are. Perform your own analysis before making an investment decision. Use money that you are willing to lose if you make an investment. If you make exchanges or investments after reading this publication, it is entirely at your own risk. I am not responsible for any of your gains or losses. By reading this publication, you acknowledge and agree that you will never hold me liable for any of your profits or losses.

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