Bitcoin (BTC) Dominance Yet To Break Past 70% But Market Outlook Remains Gloomy 

Bitcoin dominance (BTC.D) has once again fallen short of breaking past the key 70% level. This is what stands between Bitcoin (BTC) and the beginning of the next crash. The reason we expect it to coincide with the next crash is because Bitcoin dominance (BTC.D) rises mostly during periods of a downtrend when the altcoin market is falling harder compared to Bitcoin (BTC) thus leading to a higher Bitcoin dominance (BTC.D). Recently, we have seen a drop in dominance percentage but this is still not good news for the market because we have yet to see a break below the key trend line support shown on the chart. 

Even if this trend line support is broken, we would still need to see a break below the 23.6% fib level to get excited about a bull trend. Until and unless that happens, there is not much to expect on the bullish side for a number of reasons. If we were to disregard everything else and just looking at the Bitcoin dominance (BTC.D) chart, we can see an ascending triangle that may soon lead to a major breakout. This would not be a favorable development because a rising Bitcoin dominance (BTC.D) is most often bearish for the market. Short-term however, we have seen more risk-taking return to the market with altcoins rallying against Bitcoin (BTC). The trend is expected to continue for a while. The Fear and Greed Index is ready to turn towards “greed” as retail traders become optimistic again.

The daily chart for BTC/USD shows quite clearly what we can expect in the near future if Bitcoin were to crash below current levels. There is a lot of talk about a decline down to the $6k level and the $3k level but what no one is talking about is what will happen if we see a decline below the $3k level. There is a good chance, based on this chart and unfolding political and economic developments that BTC/USD could decline to a trip digit price. 

Two years back, the idea of Bitcoin (BTC) declining down to $1,000 or lower seemed a bit unrealistic. A lot of traders and analysts thought the price would find support somewhere between $1,000 and $3,000 and begin a new bullish cycle. However, that is not what happened at all. We had a bullish rally similar to the one before during the previous cycle that confused a lot of traders. However, the game plan should now be clear because BTC/USD has been repeating similar fractals. We are now at a point where a major correction is expected but this would be unlike anything we have seen before. It is likely to coincide with key world events which is why this is a time to wait and see and not be bullish on the market yet.