Hi all my steemians and welcome back to my article no.2, Your overwhelming response made me very happy and excited to post the second part of ‘Bitcoin & altcoin uptrend confirmation’ article. I am very much thankful to all my steemit friends for their upvotes comments and replies. I will do my best in future to share as much as knowledge and experiences with all my steemians.
At first just have a look at Bitcoin price, we are still holding above 6000$ level. Bitcoin current price while writing this article has bounced back above 6500$, It is again a sign of accumulation. If you look closely in the hourly chart there minor fluctuations are going on but not much volatility can be seen in the market. It means if market if falls a little, then again that is recovering within hours. So we can conclude that whales or big investors have already started to accumulate. For crypto market to move upwards it is a good sign that accumulation phase have been started. Another factor that will spike the market above 7000$ level is a good amount of volume. Let’s see what happens next.
As a continuation from my last post let’s discuss how it is confirming that Bitcoin & altcoin price is going in uptrend in upcoming months. To understand this we have to understand how a market uptrend rally generally comes. Every time when bitcoin price increases no matter whatever may be the reason after some time it starts to fall and every time after bitcoin rally there is an altcoin rally that always comes. So if we look at the market capitalization of bitcoin then we can observe that its dominance plays an important role in overall market uptrend rally. Just see carefully below in the picture, it is clearly noticeable that when Bitcoin dominance increases after that always a market rally has always come. For example we can look at the price action of bitcoin’s December chart below.
Here in this chart above the Bitcoin dominance is in its peak on December 8th and market is in uptrend but altcoins are at their all-time lows. Because big whales and market manipulators have already gained maximum profit by that time, they now invested in altcoins heavily which resulted in an altcoin rally.
Here on December 8th Bitcoin dominance reached up to 65% when altcoins were bottomed out. After that an altcoin rally had come and Bitcoin dominance reduced drastically. Below the picture confirms that decrease of Bitcoin dominance is a sign of altcoin rally.
Here Bitcoin dominance had reduced to 36% on February 5th when alts had reached their maximum peaks. After that day market had crashed drastically.
Another example for better understanding is shown below in April and May chart. On 6th April 2018 Bitcoin dominance again reached its maximum level of 45% as compared to previous few month lows. Which indicated that next uptrend or short term Bull Run was ahead.
Bitcoin dominance again reached to 36% on 6th May 2018. And other altcoins were at their peak again.
After February lows we had a short term Bull Run during April to May. So one thing is confirming here that whenever Bitcoin dominance increases there is a more chance of upcoming Bull Run. We passed through many ups and downs during first 4 months but finally when Bitcoin dominance reached its peak again, we witnessed a small bull run. You can see in the picture below that we had a complete clear Bull Run from 6th April to 6th May.
There are some other factors also that drive the Bitcoin price, but this is one of those factors for market uptrend.
One may question my point of view but facts are showing market uptrend or downtrend depends on Bitcoin dominance. You may argue that whales or big investors are manipulating the market. Ofcourse yes, I do agree with you but the whales are also playing in the market by a technical perspective, they also follow different sentiments and market technical analysis. So if you are investing into crypto market you should definitely consider these facts. Here is an illustration how and when Bitcoin dominance has changed the market momentum upwards or downwards.
Other reasons like news, futures contract by short Bitcoin or long Bitcoin, cartel theory etc. also plays an important role in Bitcoin price and market momentum. But if you want to really gain from crypto market then you should consider these facts and build your strategy how to move with market and earn profits.
I hope my short presentation was helpful for you in order to survive in this volatile market. I believe in Bitcoin and some other project's future, that is extremely bright but I want to move in the market with proper knowledge and analysis that you should also consider.
Thank you for reading my post.
(More topics to be covered soon)
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