Bitcoin threatens to break above $11,000 once again after its recent drop to $9,500. Although BTC dominance appears overdue for a major correction, it still remains bullish from a technical perspective.
The market sentiment around Bitcoin was stoked following Bakkt’s approval for physically-settled Bitcoin futures. As the first signs of the continuation of the bull trend, Bitcoin appears to be consolidating and could be bound for another surge.
Bitcoin dominance surged in the last two months after breaking out of an ascending triangle that began forming at the trough of the correction in 2017 (where BTC’s dominance was at a historic low of 35 percent).
However, it seems BTC dominance recently hit an exhaustion point after reaching 71.50 percent. In fact, the TD sequential indicator is giving a bearish signal (in the form of a green nine), which could allow Bitcoin’s dominance to retrace within the next few weeks.
This technical index predicts a one-to-four week correction that will be confirmed once a red two candlestick trades below a preceding red one candlestick. On the other hand, the bearish signal will be invalidated if a green two candlestick trades above a preceding green one candle, which will allow the uptrend to continue and possibly take BTC dominance up to 80 percent.
It’s worth noting that since late 2017, the last four times the TD sequential indicator gave a sell signal (in the form of a green nine) three were correct.
The first happened the week of Nov. 6, 2017, which resulted in a 25 percent plunge from a market share of 65.6 to 48.5 percent. The second sell signal occurred the week of Mar. 26, 2018, taking dominance from 50.2 to 38.7 percent. The last retracement was the one in the week of Sept. 17, 2018, which dropped BTC’s market share from 58.8 to 51.3 percent.
Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
Credit: Source link