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⚡Altcoin Frenzy Faces Resistance🛞

Croxroad

18 Oct 2023 — 4 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

⁉️ Bitcoin's Market Dominance Peaks

Bitcoin's dominance in the world of cryptocurrencies is on the upswing, which could potentially overshadow the success of other digital coins, known as altcoins, that have been outperforming Bitcoin since early 2021. As of Monday, Bitcoin's dominance rate reached 52.45%, the highest level it has seen since April 2021, as reported by TradingView. This surge in Bitcoin's dominance suggests that it is regaining its position as the leading player in the crypto market, putting altcoins in a challenging spot.

This recent rise in Bitcoin's dominance is in line with the positive trend that began in June, marking the end of a period where Bitcoin's market share fluctuated between 38% and 48%. Technical analysis conducted by Fairlead Strategies suggests that this trend is likely to continue in the coming days, potentially reversing the drop from 60% to 40% that was observed during the turbulent cryptocurrency bull market of March and April 2021. Back then, investors shifted their funds from the relatively more expensive Bitcoin to alternative cryptocurrencies, causing Bitcoin's dominance to decline. Katie Stockton, founder and managing partner at Fairlead Strategies, expressed optimism, stating that, "The index is poised to extend higher, especially after resolving a two-year trading range higher this summer." She added, "Our long-term trend-following indicators also support more Bitcoin dominance, and there is room to the next resistance. We expect Bitcoin to outperform altcoins, further reversing the altcoin gains made in the first half of 2021.”

Once Bitcoin's dominance rate solidifies its position above the June high of 52.18%, attention is likely to turn towards a crucial Fibonacci resistance level at 60.17%. Currently, the dominance rate sits at 51.68%, indicating that it's approaching this significant juncture. The market's response once it reaches the 60.17% level will be closely monitored by investors and analysts as it could provide further insights into Bitcoin's market influence.

🆚 Debunking False ETF Approval Hype

On Monday, Bitcoin's price went through a rollercoaster ride due to false reports of a spot ETF (Exchange-Traded Fund) approval, causing a significant pump-and-dump scenario. Despite this turbulence, there's a short-term upward trend visible in the daily chart, suggesting a potential rebound. Over the past 50 days, Bitcoin has achieved three consecutive higher price peaks, with the latest one still forming. The ETF rumor briefly sent Bitcoin retesting the crucial $30,000 mark, and it's currently hovering around the $28,369 support level. This support level sits right in the middle of the trading range between $24,888 and $31,850, which was established between July 13 and September 11. It's a dynamic time for Bitcoin's price, with various factors in play that could determine its short-term trajectory.

Should Bitcoin's price manage to produce a daily candlestick closing below the $28,369 support level, it would serve as confirmation that the downward trend observed over the past 50 days is still in effect. If this scenario plays out, those with a bearish outlook could consider opening a short position once the daily candlestick closes below $28,369, anticipating the formation of a higher low in the vicinity of $27,000.

Adding weight to this perspective is the bearish divergence evident between the last two significant swings in Bitcoin's price and the Relative Strength Index (RSI). This divergence suggests a weakening trend and signals that caution may be warranted for Bitcoin traders and investors.

Conversely, should Bitcoin's price manage to produce a daily candlestick closing above the $28,369 mark and maintain its position above it, it would nullify the pullback scenario on the daily time frame. In this scenario, the ongoing uptrend might gain momentum and potentially drive Bitcoin's price towards the key levels of $30,000 and $32,000, signifying a more bullish trajectory in the near term. This outcome could bring renewed optimism to Bitcoin traders and investors.

📐 Ascending Triangle

The ascending triangle is a pattern that emerges in the price movement of an asset, and it's a strong indicator of potential upward momentum. It forms when the asset's price consistently makes higher highs and higher lows, illustrating a bullish trend. Key characteristics of this pattern include the formation of higher highs and higher lows, a horizontal resistance level at a specific price point, and the typical occurrence of this chart pattern in the midst of an existing uptrend. Essentially, the ascending triangle suggests that the asset is poised for a breakout to the upside, making it a favorable signal for buyers and traders looking for opportunities in the market.