Although the structure broke in a positive way for altcoins, they were trending lower, then rose higher than people expected and now they are down again.
The reason for this is that the market structure works differently than most people think.
Support lines are not absolute, and trend lines are not either.
They are literally invisible lines that we draw ourselves.
But what do you do, do it well? Structural fractures emerge.
Change of direction or momentum.
Bitcoin dominance has seen a very strong decline in a very long time in the past month.
So, obviously people started getting confused when it went back up last week. Especially when it didn't respect the higher trend line as a new test.
(I know I'm probably making things a little too complicated for novice analysts, but bear with me.)
The break of the previous structure was suggestive and although the price did not retest the external trend like or higher time frame support.
It has effectively retested its origin zone. The supply zone it left behind or the order zone for those more familiar with technical analysis terminology.
Nothing is 100% absolute but don't discount Bitcoin's dominance being broken just because we pulled back a bit last week.
And certainly not because we didn't respect some imaginary trend line we drew (the line is basically there to highlight the break of the structure).
Everything is still in alignment. It's just visible only to those who know enough to see it.
Don't fall into the traps of retail.
