Hey crypto traders, if you don’t know about the Bitcoin dominance chart and why it matters for all you traders out there, listen up! So, picture this: the BTC.D chart on the daily timeframe is throwing some serious signals at us. It’s like the crypto market’s version of a head and shoulders pattern, and it’s currently hanging out just above the 50% mark. Today, we are looking at BTC dominance chart, so let’s get to it!
The Head and Shoulders- BTC.D’s Drama Unfolding
Now, you might wonder, what’s the big deal with this head and shoulders thing? Well, my friends, it’s a potential game-changer. If this pattern plays out, we could witness a shift in Bitcoin’s grip on the entire crypto market, at least for a time. Bitcoin’s price action could be taking a breather, which will let the altcoins have their run in the sun.
Head and shoulders patterns are a bearish reversal pattern, and when seen on a time frame like the daily, it’s probably pretty serious.
The Altcoin Uprising: Where’s the Money Moving?
When the markets chill on Bitcoin, money tends to start exploring other corners of the crypto universe. First stop? The bigger altcoins like Ethereum, Binance Coin, Cardano, and Solana – these bigger coins often get a major slice of the action. Traders, pay attention! This could be your golden ticket to ride the altcoin wave. After the bigger cap coins, the money starts to flow down the list to the smaller caps, then eventually finding it’s way back to good ole BTC.
Preparing for Altcoin Season
Now, don’t panic. I am not saying Bitcoin is bowing out permanently. It’s more like a breather, like an old man going to take a nap, which honestly sounds pretty good, haha. So, what’s a trader to do during this potential Bitcoin siesta? Well, my friends, it’s time to diversify your trading stack and look into those other cryptos, explore new possibilities, and maybe catch some gains on the way.
Don’t Date Them, Just Trade Them
There are many out there that are just Bitcoin only kind of people, we call them maxis. Well they need to expect a bit of stagnation for BTC. If this is you, this is your chance to explore what else is out there and make some money along the way. The crypto market is a vast ocean, and there’s more than one fish swimming around.
So, buckle up, be cool like this Dude, and ride the waves of change in the crypto world. Even if you are one of those Bitcoin maxis, sometimes you have to look at what else is on the menu! A term I heard once that stuck with me, ‘don’t date them, just trade them’! That means if Bitcoin is the only coin you hold, then hold it, but don’t count out the gains you can make trading other coins, just turn those gains into more Bitcoin!
This was originally posted as an idea on my TradingView profile! Go follow me there for more charts and while you are there, add the Logical Trading Indicator V.1 to your charts for free and start trading logically!
Wanna get on a path to financial freedom?
Join the Logical Trading Academy!
Trading Education | Trade Community | Trade Alerts | Market Analysis | Trading Indicators and Strategies
Get my ‘Anyone Can Be A Trader’ eBook Today!
Just getting started as a trader? Check out my latest book that can give you some direction for your trading journey!
Get edge in the markets with the Logical Trading Indicator
Get this game changing indicator that can help you gain some serious edge in the markets while still living your life!
Get the Logical Trading Indicator and start trading logically today!
Additional Blog Locations
Many of my cryptocurrency related articles as well as trading articles can also be found on my crypto research site, Coin Logic.
I also post trading chart ideas on my TradingView Profile.
The information in this trade journal is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.