Bitcoin: USD/BTC (BTC=X) dominance slips despite price gain

Bitcoin: USD/BTC (BTC=X) dominance slips despite price gain

Bitcoin: USD/BTC (BTC=X) dominance slips despite price gain

According to CoinMarketCap data, the BTC market dominance now stands at 50.8 percent. This figure represents the lowest market dominance since mid-August 2018.

Data shows that Bitcoin’s share of the total cryptocurrency market capitalization has been sliding downwards since the latter part of January 2019. The drop in market share comes despite Bitcoin price trending upwards in the last four weeks.

Dominance slide or not, there is growing optimism among BTC bulls as to prospects of the cryptocurrency in 2019. Bitcoin trading guru, Tone Vays says he predicts BTC at $6,000 as long it breaks the $4,200 barrier.

But Vays isn’t the only one who sees BTC going beyond the $5,000 mark with TRON CEO, Justin Sun forecasting that Bitcoin would trade between $3,000 and $5,000 in 2019.

Tom Lee of Fundstrat, in a market outlook delivered at the start of the year, also declared a reversal of negative market factors adding to a tailwind that would push BTC price higher in 2019.

Should a declining dominance constitute a worry for Bitcoin users? Well, historical data shows the opposite as the lowest Bitcoin dominance index ever recorded was around 32 percent in December 2017 when the BTC price was at its record high of $20,000.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 3,875.94.

The projected upper bound is: 4,284.98.

The projected lower bound is: 3,666.75.

The projected closing price is: 3,975.86.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

An inverted hammer occurred. If this occurs during a downtrend it implies a reversal. Look for a confirmation of the reversal on the bar.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

A shooting star occurred (a shooting star has a small real body near the bottom of the candle and a long upper shadow). During an uptrend(which appears to be the case with FOREX BTC=) the long upper shadow indicates that the bears are gaining control and a top may occur.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 46.5165. This is not an overbought or oversold reading. The last signal was a buy 21 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 52.39. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 26 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 32. This is not a topping or bottoming area. The last signal was a sell 1 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 0 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed down -11.340 at 3,964.900. Volume was 65% below average (consolidating) and Bollinger Bands were 41% narrower than normal.

Open High Low Close Volume___
3,973.8904,055.9003,958.7603,964.900 24,162

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 3,985.41 3,781.76 4,760.26
Volatility: 53 52 65
Volume: 57,632 65,554 74,053

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FOREX BTC= is currently 16.7% below its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of BTC= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on BTC= and have had this outlook for the last 39 periods.

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