What can we expect in the coming days with BTC and the ecosystem?
Contrary to popular opinion, the market is doing nothing.
We are literally moving sideways, trapped in a range that has already stretched out for a long time.
However, there are several considerations:
Within the sideways movement, a distribution phase occurred. Every time the price interacts with a key level, large selling volumes appear.
The tendency is to rise slowly and then fall suddenly, on this side.
All the drops are accompanied by BIG VOLUMES. But the price does not break the range, which means they are buying and accumulating on the dip.
The general structure remains bullish, because there is no invalidation of previous levels, i.e. falls below 40 (annual opening price), it only moves sideways while some distribute and others accumulate.
Below is a brief analysis of $BTC and the possible moves that follow.
After many attempts, we finally broke the resistance at 57,700 with a view to going to the next level at 59,700. The point is that the price must close above the level and give confirmation, i.e. be accompanied by: Buying volume and a bullish continuation candle.
When it reaches 59,700 we should expect the same. Otherwise, the scenario of last week could repeat itself: being rejected in the zone and falling.
In short: the preference is to go up, for the moment up to that level. Then we must wait and confirm.
The dominance of BTC and ETH:
This is what interests me most at the moment.
The price is trading sideways as the next big move is brewing. Meanwhile, BTC and ETH dominance remained unchanged, following the range.
What does it entail?
All the bulk of the capital is in these two, preventing capital from flowing to Altcoins, which is why we must follow dominance.
As we can see, dominance has not changed much. But it is important for the following reasons:
This dominance marks the cycle of the "alt season", as follows.
First, BTC capitalization rises
It then flows into ETH, increasing its dominance.
It eventually gets distributed and flows into altcoins.
Altcoins rise, profits are taken and BTC is accumulating again.
The cycle repeats itself.
When prices start to move aggressively, pay attention to dominance to know where it is best to trade.
Alt season is far away, but the time for accumulation is near.
This is the guide to interpreting BTC dominance and price.
Conclusions:
We are on the verge of a big move, so we need to prepare for the next step.
We don't know where the money will flow, but by analyzing dominance we can get clues.
If dominance falls, we should follow the price of BTC and #ETH to know where it is more profitable to position ourselves.
The market is not escaping us, stay calm. It only makes us dizzy and leaves us out, so don't get carried away by emotions and analyze it calmly.
Crypto Citizen says goodbye!! I wish you a great week and great profits.
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