Bitcoin dominance:
On 21st May 2021 the Bitcoin dominance index started the formation of an ascending triangle. Now the priceline is very close to the resistance of this triangle. Previously we have seen so many rejections by this resistance. If the Bitcoin index will be rejected again by this resistance and breaks down the support of this ascending triangle, then it can even touch the lowest value of 35. After breaking down the support and the altcoins will be free to move towards upside or downside Bitcoin dominance. But in case of breaking out the resistance, Bitcoin can again drive the altcoins with its move.
Altcoin index:
But only breaking down the Bitcoin dominance is not sufficient. In order to start a big altcoins bullish move we need to watch the altcoin index as well and that is Total2 index. This index shows the altcoin market performance excluding Bitcoin. If we take a look at this Total2 index then it can be noticed that previously it was moving in an up-channel and after breaking down the support it has formed a down channel. While moving within this new down channel it has moved very close to the very strong price level support and the support of this down channel as well. So we will need to break out this channel along with the breakdown of Bitcoin dominance as well.
Conclusion:
Most of the traders are only watching the Bitcoin dominance chart, and waiting for the dominance to be decreased or break down the support. But we also need watch the altcoin index (Total2 index) as well. Because at one side if the BTC dominance will be broken down and on the other side the altcoins index will be moved up then an altcoin season can be started like we have witnessed in Jan 2018. Therefore, it is important to watch both charts.
On 21st May 2021 the Bitcoin dominance index started the formation of an ascending triangle. Now the priceline is very close to the resistance of this triangle. Previously we have seen so many rejections by this resistance. If the Bitcoin index will be rejected again by this resistance and breaks down the support of this ascending triangle, then it can even touch the lowest value of 35. After breaking down the support and the altcoins will be free to move towards upside or downside Bitcoin dominance. But in case of breaking out the resistance, Bitcoin can again drive the altcoins with its move.
Altcoin index:
But only breaking down the Bitcoin dominance is not sufficient. In order to start a big altcoins bullish move we need to watch the altcoin index as well and that is Total2 index. This index shows the altcoin market performance excluding Bitcoin. If we take a look at this Total2 index then it can be noticed that previously it was moving in an up-channel and after breaking down the support it has formed a down channel. While moving within this new down channel it has moved very close to the very strong price level support and the support of this down channel as well. So we will need to break out this channel along with the breakdown of Bitcoin dominance as well.
Conclusion:
Most of the traders are only watching the Bitcoin dominance chart, and waiting for the dominance to be decreased or break down the support. But we also need watch the altcoin index (Total2 index) as well. Because at one side if the BTC dominance will be broken down and on the other side the altcoins index will be moved up then an altcoin season can be started like we have witnessed in Jan 2018. Therefore, it is important to watch both charts.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.