Analysis of BTC dominance on the chart is critical to understanding market trends and evaluating altcoin opportunities. I present a detailed analysis below:
1. Technical Analysis of the Chart
• Target and Prices:
• A downtrend is predicted on the BTC dominance chart. There is a 12.95% downtrend projection in the target area. This could indicate a period in which altcoin markets may strengthen.
• Support and Resistance Levels:
• Upper Channel Resistance: The 62%-63% range has been determined as the breakout zone.
• Main Support Level: It is in the range of 56%-57%. If this level is broken, the target area may expand to the 48%-50% band.
• Trend Channel:
• The lower band of the upward channel has been broken, indicating that the current uptrend has ended and a downtrend has begun.
2. Indicator Analysis
• Volume:
• The increase in sales volume is remarkable. This may increase the strength of the downtrend in dominance.
• Momentum and RSI:
• The RSI is approaching the oversold region, indicating that the decline may slow down or a short-term recovery may occur.
• MACD:
• The negative crossover of MACD indicates that the downward trend may continue.
3. Formations and Formation Reversals
• Bear Pennant:
• The chart shows a bearish pennant formation, which is a strong signal that the downward movement will continue.
• Channel Breakdown:
• Breaking the lower band of the upward channel may be the beginning of a long-term downtrend.
4. Trend Direction
• A downward trend is seen in the medium and long term. This situation may pave the way for upward movements in the altcoin market.
5. Strategy and Recommendations
• BTC Position:
• The decline in BTC dominance indicates that BTC may lose value against altcoins. Those who invest in BTC may consider taking profits to hedge their risks.
• Altcoin Opportunities:
• Opportunities may increase in altcoins. Especially in periods of low dominance, altcoins with high potential can be evaluated.
• Support Level Monitoring:
• The 56%-57% level should be monitored carefully. Breaking this area may trigger an altcoin season.
• Short Term Strategy:
• There may be recoveries in the short term. However, since the general trend is downward, increases can be considered as selling opportunities.
• Risk Management:
• Stop-loss levels should be determined to be prepared for sharp movements.
This analysis is based on an overall market outlook and there are many factors that should be carefully considered when making an investment decision.