Bitcoin dominance needs impetus – overall market analysis
Bitcoin dominance is moving sideways, the overall market is stumbling a bit. Welcome to the current overall market analysis.
A look at the market capitalization
Total market capitalization based on values of Cryptocap shown
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
Total market capitalization excluding Bitcoin based on values of Cryptocap as well as on the basis of the value pair BTC / USD on Coinbase shown
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.
An outbreak of this narrow range would be an indication that a larger and probably more sustainable movement in the overall market is imminent. Whether it manages to leave Altcoins behind again or if investors switch back to Altcoins and thus trigger a new rally will be very easy to read in this chart.
Bitcoin dominance continues to trend sideways
Bitcoin dominance based on values of Cryptocap shown
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.
Disclaimer: The price estimates shown on this page do not constitute buy or sell recommendations. They are merely an estimate by the analyst.
The chart images were taken using Trading View created.
USD / EUR rate at the time of going to press: 0.90 euros.
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Disclaimer: This press release is for informational purposes only, the information does not constitute investment advice or an offer to invest. The opinions expressed in this article are those of the author and do not necessarily represent the views of CriptomonedaseICO , and should not be attributed to, CriptomonedaseICO .