Let’s try to understand #Bitcoin dominance now
At this moment, Bitcoin dominance has risen and is hovering around 63.20 to 63.36. It has already increased further. You can see this structure here — this structure indicates that in the 1-hour time frame, it is repeatedly trying to follow this trend line by taking support from the same position. However, we need a breakdown of this trend line.
If this trend line is to break down, then we need to identify where the resistance in Bitcoin dominance is. If you want to see the resistance, you’ll find it around 64.40 or 64.36. If it fails to break this level, the resistance might push it into a downtrend again. But if it manages to break it, we might be in trouble.
So, for those who are becoming bullish just by seeing a slight drop in Bitcoin dominance and opening long positions — don’t go all in. Because Bitcoin may face rejection. Liquidation can happen at any moment. That’s why you should remain cautious in the market at this time.
