Bitcoin dominance needs impetus – overall market analysis
Bitcoin dominance needs impetus - overall market analysis
The overall market is again below $ 200 billion this week. Attempts by the bulls to return the market capitalization sustainable above the resistance at 205 billion US dollars, failed several times – purchases on a broad front are still missing.
The overall market is thus still trapped in bearish climes. Currently, the total market capitalization is a good four percent lower than in the previous week. If the 190 billion US dollars are given up, threatens again a crash in the gray support area between 178 billion US dollars and 170 billion US dollars.
Thus, the temporary recovery seems to be over at the end of the previous week. Once the $ 170 billion threshold has been re-launched and broken down, targets remain at $ 155 billion and $ 133 billion, respectively. The view is therefore still in the direction of the reserve currency Bitcoin. The heavyweight in the cryptocurrency market largely determines the direction of the overall market for the coming period.
Consideration of the Altcoin chart vs. Bitcoin
Looking at the chart of Altcoin/Bitcoin pairs versus BTC shows a similar picture as in the previous week. The course is still trapped in the green area. Supportive is the red horizontal support line paired with the Supertrend. On the upper side, however, the middle Bollinger band blocks a possible increase in the direction of the red resistance region. Volatility is also on the decline.
Since only a few Altcoins perform better than the reserve currency, sideways movement is currently likely.
Bitcoin dominance continues to trend sideways
The dominance of the key currency initially overcame the red downtrend line. In the following days, however, the course failed several times in the important resistance at 68.83 percent. Currently, the bitcoin dominance is only slightly above the week ahead at 68.55 percentage points. Thus, the dominance of the key currency does not provide any new insights for the time being.
The bullish wedge was resolved upward, but the outbreak did not provide any real impulses. On weekly view, the chart has now formed a higher high and low. However, as long as the bitcoin dominance does not rise above the 68.83 percent per daily close, the dominance of the reserve currency remains trapped in a sideways range.
An outbreak above this mark activates the target at 69.53 percent. Only if this chart level is recaptured, goals above the 70-percent mark are conceivable.
On the bottom now support the first 68.01 percent. Only if the BTC dominance also pushes down the 66.42 percent, further levies in the direction of 65 percent would be likely. So far, the breakout from the bullish wedge could not provide insight. The addressed in the previous week directionlessness in the Bitcoin dominance continues thus.
Total market capitalization: caution is the order of the day
Investors’ nerves have been put to the test in recent days. The crypto-tracking website Whale Alert reported several large shifts in bitcoins. About the background can only be speculated. The fact is, the overall market is currently trapped in a make-or-break zone.
So far, the bulls are not able to move the market capitalization back on the 205 billion US dollars. It threatens a re-test of $ 170 billion support.
The cops continue to shine with their absence, holding back on purchases of cryptocurrencies. The field is still the short-term oriented traders. The chart situation at Bitcoin currently favors a reopening of the range between $ 6,600 and $ 6,800.
The first bullish signals for medium-term investors, however, are expected only above the $ 7,800.