Bitcoin failed to close the week above $ 7000, BTC dominance rate continues to plummet, is it time for altcoin to take the throne?














For the week of April 5 - 12, Bitcoin price did not close above the significant resistance at $ 6,800.


Though the price initially exceeded this resistance, it created a long upper shadow and closed below. The model signals a possibility of price decrease in the medium-term trend.


Weekly outlook of the Bitcoin


For the week of April 5 - 12, the weekly candle closed below the most important support and turned into resistance at $ 6,800. Moreover, BTC creates a long upper shadow with a really small body, which is a bearish sign.


Failure to break above previous support levels suggests the price may go down. If so, the 200-week moving average (MA) is found at $ 5,650, while the next support is around $ 5,350.



Bitcoin chart | Source: Trading View


Future developments


Observing the lower time frame, we can see that the price of BTC has broken down from the wedge. Yesterday's movement confirmed that the wedge support line is resistance and the price should form a reverse hammer.


If BTC starts to turn down, the nearest support area found from here is $ 6,300.



On an even lower time frame, Bitcoin dropped back to the previous range of $ 5,700 - $ 6,900.


In this context, the April 6-9 rally above $ 7,000 appears to be a small spread across the range and is now disabled by falling back inside. The midpoint (EQ) of the range also coincides with the outlined support area.


Because the price has broken below the short-term support level, it is expected to fall to $ 6,300.


bitcoin


In a nutshell, BTC broke down from the rising wedge and confirmed it was resistance afterwards. There is a high possibility that the price will continue falling at least until it reaches $ 6,300.


Ratio dominance of Bitcoin reduction challenge market expectations


Bitcoin's dominance rate continues to decline. Currently, Bitcoin dominates 64.2% of the total market capitalization, down 3 basis points, or 4% in 2 weeks.


Meanwhile, many types of altcoins have increased their 2-digit capitalization today, raising the question of whether the upcoming altseason?


bitcoin


Dominance chart Bitcoin in 6 last month | Source: Tradingview.com


In the world of cryptocurrencies, altseason is when non-Bitcoin crypto starts to increase in value as the market goes up.


Indeed, total market capitalization has increased markedly from a low of 3 weeks ago. At the time, panic selling triggered a huge cash outflow from the digital money space.


Follow Tradingview.com, total market capitalization fell to a low of $ 108 billion at the time. However, the index has so far regained 91% from Dark Thursday.


bitcoin


The total market capitalization of cryptocurrencies in 6 last month | Source: Tradingview.com


Last week, many altcoins increased significantly. In particular, VET increased by 20% in less than 24 hours. DGB and LINK made the second and third biggest increases, respectively 16% and 15% last week.


In the current economic situation, Bitcoin's dominance rate is expected to increase, as investors seek to secure assets through the most reliable use of cryptocurrencies.


Product Manager Qiao Wang at Messari agrees with this view. Recently, he predicted that BTC's dominance index will reach 90% by the end of the economic crisis.




"I am not a maximist with any standards, but I absolutely expect it ratio Bitcoin's dominance will increase over 90% by the end of this economic crisis.


Expanding this thinking, Wang points out that alts are driven by speculative demand. But speculation needs support during times of crisis, leading to a drop in interest in the alts.




"I simply was is not see any real need for alts during the cycle of recession. In the past, demand came from speculation for future utilities. But when people lose their jobs, speculation will be killed died.


However, alts are now challenging that view by continuing to cycle higher in the context of a crisis. And while we are just beginning the economic crisis, which is yet to go through Wang's prediction, the story of converting to altcoins should also be considered.


Indeed, since the beginning of 2017 - the last altseason, many alts have brought their own reputation, separate from Bitcoin.


The most obvious example is ETH, which went from a smart contract utility platform to a high-value transactional payment application, thanks to the development of DeFi.


Moreover, attached to this idea is the fact that many alts have found clear use cases, solving problems in the real world. As such, wandering all the alts driven by speculation is not entirely accurate.


You can see the price of BTC here.


Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.


Minh Anh


According to AZCoin News










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