After yesterday's negative closing of the daily candle for BTC, it is close to updating the local loy. As expected. The price again approaches the volume level of $64,120.
The breakout target is the volume level of $62,987. Not only volumetric, but also mirror level. In general, we wrote about important support the other day. As long as the level of $64,120 is maintained, there is a chance of a reversal through a local “Double Bottom”.
We consider the situation of a possible Loy update solely as a possible additional liquidity gain after going into a rebound and, possibly, a reversal. But so far, yesterday’s reaction from sellers from the EMA of the 50 day TF and the downward trend since June 7 (they have not even been tested) makes it clear that there is not enough liquidity for this. An additional set from below was needed. The two resistances mentioned above are now key for the rebound scenario and a possible reversal scenario.
On the BTC futures chart on the Chicago Mercantile Exchange (CME), a reversal formation is ending today, according to the trend reversal indicator. But yesterday’s sales brought the price back below the EMA of the 50 day TF. Until the price returns higher, the reversal is not confirmed. Despite the strong reversal formation. And below there remains a “magnet” - a gap of $60,830-$61,045.
What is noteworthy is that BTC’s dominance continues to decline. The candle on June 18 showed a bearish pin bar, then the local upward trend support from May 29 was broken (they did not apply it to the already overloaded chart) and the global upward trend support for the entire uptrend from the fall of 2022 (indicated by a dotted line).
These are three conditions for continuing the decline in dominance, which were written about on June 18. The next important support is the EMA of the 50 day TF, currently 55%. We are highly likely to see her test in the coming days. Simply because altcoins have gone nowhere further and they are now at least maintaining the range when the BTC price decreases.
AT THE same time, the ascending structure of candles according to DeMark on the dominance chart remained until yesterday. And only today’s candle can begin to report a decline. BUT it is VERY important to wait until the close of the day. Continuing the correction of dominance would now allow altcoins to continue to grow in the range of at least rebounds.