Here we have Bitcoin Dominance (BTCDOM) but this time through the perpetual futures contract on Binance, weekly timeframe.
The bearish bias is fully confirmed — already a developing phenomena — it has been happening for months.
A little more than two months ago, on the 16-June week, BTCDOM peaked and started dropping. The break of the uptrend was confirmed with four consecutive weeks BTCDOM closing red. The action went below our short-term moving averages and also below a strong Fib. retracement level.
The last two weeks closed red. This is the third week and while it is green, most of the space won has been lost. The current candle is a bearish hammer, a continuation of the previous two and of the broader bearish move.
While BTCDOM was rising for years volume was dropping for years. This volume divergence supports the structure breakdown we are seeing now. The next support is found around MA200, black line on the chart. This indicator has a reading of 2277. MA200 falls between 0.618 and 0.786 Fib retracement.
As Bitcoin Dominance moves down (BTCDOM), Bitcoin (BTCUSD) and the altcoins (TOTAL) grow.
Namaste.
