BTC Dominance Analysis

16 paź

📌 Trading Instrument: 📌
🔶 BTC Dominance (BTC.D) 🔶

📝 Detailed Market Overview: 📝
Bitcoin Dominance has reached an extremely bullish zone, nearing parabolic levels. Historically, such parabolic moves are often followed by a strong and fast correction. Currently, BTC.D is showing signs of bearish divergence, making it difficult to invalidate this signal. Additionally, BTC.D is around the 0.61-0.65 Fibonacci retracement level, a critical resistance zone.

Over the next 2-3 weeks, I anticipate a breakdown in BTC dominance. A confirmation of this will come if BTC.D breaks below the green diagonal support trendline, which has supported this uptrend for over 700 days.

Upon breaking this support, a retest of the previous key resistance, which is now expected to act as support, will likely occur around the 47-48% dominance level. This zone has not been retested since the breakout, and it aligns with the 0.5 Fibonacci retracement level. If BTC.D moves a bit higher before the rejection, this key level would coincide with the 0.61-0.65 Fibonacci zone, often referred to as the golden pocket, making it a high-probability reversal zone.

Following this correction, I expect BTC dominance to resume its upward momentum, targeting a minimum of 79-80% dominance in the longer term.

🔍 Key Signals:

• Bearish divergence on multiple timeframes.
  
• Proximity to the 0.61-0.65 Fibonacci retracement level.
  
• A potential breakdown of the 700-day diagonal support.
  

🎯 Bearish Target:

47-48% dominance (retest of key support)
🚀 Bullish Outlook After Rejection:

A strong reversal after testing support could propel BTC dominance to 79-80% in the long run.
⚠️ Confirmation Needed:

Watch for a break below the green diagonal trendline to confirm the top and initiate the bearish retracement.

🚨 Disclaimer:
This is not financial advice. Always conduct your own research and trade responsibly. Markets are highly volatile, and you should only invest money you are prepared to lose.