Since back in May when bitcoin dominance broke a multi year ascending support/resistance
* Seen in this image as the ascending red line
We have for the past 14 months or so been in a falling channel seen here.
What to expect going forward?
Traditionally on election years the months of september and october are quite negative for markets, though bitcoin has been performing well in recent weeks many major alts are under performing both vs bitcoin and in dollar value. This is likely to continue for the next few days and perhaps into the first week of November
How to trade bitcoin dominance
Although individual alt coin performance can vary significantly for the past year i have been buying alts predominantly in the upper band and selling into bitcoin when we retest the bottom of the channel. A falling channel will typically break to the upside but seeing such a long term formation gives us a good risk to reward when trading
What to be aware of
Should bitcoin dominance close daily or weekly candles to the upside on the channel that's when you will need to make a decision on whether you are to cut your losses on alt coins, buy more or simply hodl. For my trading plan i expect the close of this year to likely be strong for alts but this will depend largely on how bitcoin behaves in the coming weeks. In the short term i am looking for bitcoin dominance to hit the top of the channel as well as a weekly resistance level at around the 64.5% level, for me this is a strong confluence of both diagonal and horizontal levels and may well line up nicely with the start of november which is likely to signal a more strong altcoin market if bitcoin consolidates around its current range between around 12.8-14k.
Always do your own research and happy trading!
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