We looked at the Market Cap BTC Dominance ( BTC .D) chart recently and noticed a potential top/peak being hit.
This was marked by bearish divergence coming up on both indicators, MACD and RSI, as well as decreasing volume and alts season coming up.
Now, we are seeing BTC .D move and close below EMA10 (72.11) for the second time.
If the last low at 72.00 fails, we are very likely to see BTC .D move lower to 70.53 – 71.00, followed by 69.65 which is the 0.236 Fib. retracement from the last bullish wave.
The main potential scenarios are drawn on the chart.
Where do you think Bitcoin ( BTCUSD ) is headed?
1- Do not invest in every ICO – most of them are a scam.
2- Crypto is a heavily manipulated commodity and the price can change at any moment.
3- The creation cost of a coin represents the “wholesale” price – It is always better to buy when the price is close to the creation cost.
4- Crypto has a natural cash flow that dictates the selling pressure. Like, 1800 bitcoins are mine each day so 1800 bitcoin must be bought at the current price (“means market needs new $18 millions of investment every day if the price is $10,000 to maintain the current price“).
5- Patience and timing are key to making a profit:
Buy, when the price is close to the creation cost.
Sell, when the price is way high off the creation cost.