Road to 50k? pt.2

A small part is missing from the analytical article published yesterday relating to the analysis of Bitcoin. As an appendix, therefore, let's now analyze the Total Marketcap and the BTC-Dominance, crossing the data of what has been done previously:

Road to 50k?

Total Marketcap

The Total Marketcap is, in simple terms, the amount of dollar money present within the crypto world. It has a very particular graphic trend and (sometimes) shows the market trend better than BTC/USD. In the last period it has undergone a marked retracement following the all-time-high (3 Trillions), which led it to form a lower-high on the chart. It is currently at around 1.9T and is trying to break through the 2T resistance. If it succeeded in doing so, a local bottom would in fact emerge, which would see the next resistance step at 2.4T. All these resistances are clearly visible from the weekly timeframe of the chart on Tradingvew

Dominance

The Dominance of Bitcoin (Tradingview) stands at 43%, after bouncing off the support at ~39%. It expresses the distribution of capital on Bitcoin with respect to altcoins, so when BTC rises, it performs better than alts and vice versa. On the chart, the short-term trend is positive and (if it continues) it could soon lead to the top of the range we've been in for months (~50%). This, translated, means that in the coming weeks Bitcoin could have higher percentage increases than the other coins, therefore it would not be wise to open speculative long positions on them. To conclude, therefore, it can be said that BTC.D has been oscillating between 40 and 50% for months, making it quite difficult to identify a macro-trend. A break of support or resistance is the only thing that would lead to a definite and directional move.

Finally, a news regarding Bitcoin that is very important for the network: the computing power (hashrate) marks new highs. Following the ban by China in the summer of 2021, the hashrate had slowed sharply, but recovered vigorously, even surpassing the previous high. This is very positive for Bitcoin as it means that more and more miners participate in the network making it more secure.

Conclusions

From the technical analysis weak bullish signals arrive due above all to what appears to be the formation of a higher-low. Also from the analysis of the Dominance it seems that the trend is up, suggesting a positive performance in the current week. Obviously no one has the ability to predict the future, but by crossing the various analyzes with the news on the hashrate, one can be cautiously optimistic about the short term. This week's opening on BTC/USD is also not bad and shows some positive reaction from demand. Demand is in fact what commands the graphical trend of the price given that the supply is fixed and when this makes itself felt, bullish phases of the market are looming. Finally, I specify that all these considerations are not valid if the time horizon on which your investment is based is long-term. In this case, in fact, the consideration to be made is totally different and concerns more than anything else the value of the technology, which is independent of the price.

Not a financial advice. DYOR before invest

Read Also:

Not yet subscribed to Celsius Network

Yield your BTC up to 6.20% APY and receive a $this link

If you liked this article, please support me by following me leave me a likeuse one of my referral links below

-Thank you-

Binance, 10% discount fees

Coinbase, 10$bonus in BTC

 Join Celsius Network using my ref & earn $50 in BTC

Use BlockFi and get up to 4% on Bitcoin.Read here how to do