Crypto4light
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Bearish
$BTC My idea for the peak of Bitcoin dominance was around 62%, but that turned out to be incorrect — Bitcoin dominance has now reached 65%.
The original logic was based on seasonality, liquidity flow, and key levels on the weekly chart.
Given the current trend, a move toward 71% dominance and a first test of the take-profit line on the monthly chart no longer looks unrealistic.
The zone for taking profits on altcoins remains the same. Since the lines are dynamic, the Bitcoin buy zone (i.e., altcoin sell zone) currently sits at 36% dominance. In six months to a year, that threshold will likely be higher — so consider setting an alert at that level on the monthly chart.
The good news? On the monthly timeframe, we’re now seeing two consecutive months of capital outflows and a market sentiment of total euphoria on BTC dominance.
The original logic was based on seasonality, liquidity flow, and key levels on the weekly chart.
Given the current trend, a move toward 71% dominance and a first test of the take-profit line on the monthly chart no longer looks unrealistic.
The zone for taking profits on altcoins remains the same. Since the lines are dynamic, the Bitcoin buy zone (i.e., altcoin sell zone) currently sits at 36% dominance. In six months to a year, that threshold will likely be higher — so consider setting an alert at that level on the monthly chart.
The good news? On the monthly timeframe, we’re now seeing two consecutive months of capital outflows and a market sentiment of total euphoria on BTC dominance.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.