Bitcoin Dominance: A Slow and Steady Rise 1D (Jun. 1)

X Force Global Analysis:


In this analysis, we explore the Bitcoin dominance chart in order to determine the probable cases of Bitcoin and altcoins that have been on a bullish rally.

Analysis

- Bitcoin dominance is trading within an ascending parallel channel, forming higher lows and higher highs
- Within the ascending channel, we are consolidating in a smaller descending channel
- This is a textbook bullish flag pattern, and it is expected that we see a potential breakout
- Dominance is reaching close to the ascending trend line support and the 0.382 Fibonacci retracement support
- The Relative Strength Index (RSI) is at neutral levels, having formed higher lows and higher highs as a sign of strength
- The Moving Average Convergence Divergence (MACD) also shows decreasing bearish histograms, and a potentiality for a golden cross


What We Believe

Essentially, this indicates that capital that has flown from Bitcoin to certain promising altcoins, may flow back into bitcoin, leading altcoins to a bearish trend. A breakdown from the ascending parallel channel would negate this theory.

Trade Safe.