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Market Cap and Bitcoin Dominance Technical Analysis

Updated: Aug 31, 2024
Published: May 30, 2019
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The Total Crypto Market Cap (TradingView Ticker: TOTAL) has been registering new yearly highs since the beginning of April. In our previous “TOTAL” technical analysis, we identified the $216B-$246B S/R liquidity region, inside of which we were trading at the time. We recently had an upside breakout from it and seem to be eyeing the next key level sitting at $290 Billion. It is worth noting, however, that we have not retested $246 Billion for support yet, although it is not a requirement.

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Altcoins Market Capitalisation

Similar to TOTAL, the Altcoins’ Market Cap (TradingView Ticker: TOTAL2) is also setting yearly highs. We explained in our previous analysis that due to the bullish momentum witnessed, we were eyeing the $110B-$120B S/R liquidity region. After recently rejecting the lower limit for a few consecutive days, we were able to break through and enter the region.

There are three plausible scenarios after the entry:

  • Bullish: We continue registering higher highs and break through $120 Billion. In which case we’ll be eyeing the next resistance: $145 Billion
  • Sideways: We consolidate inside the zone before breaking higher/lower.
  • Bearish: We reject the area and possibly retest $85.5 Billion.
 

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Bitcoin Dominance

After invalidating the descending triangle, the Bitcoin Dominance (TradingView Ticker: BTC.D) rose drastically alongside Bitcoin’s journey to $8,000+. The rise was met by the 63.2% resistance, coinciding with a previous high, that caused a major rejection. BTC.D then entered consolidation before continuing lower.

Currently, we are nearing a supportive region around 57.0%, that may or may not offer a bounce. If the support breaks, we can expect further downside that will probably correlate with more altcoin bullishness.

Confluence Building

The market is currently in a very volatile period. As a result, long sideways consolidations are not very likely. The Bitcoin Dominance should be monitored as it is most likely to give the best indication at the moment, if the 57.00% area of support breaks, we can expect more altcoin movements to the upside as capital will continue to flow from Bitcoin to Altcoins. If that occurs, TOTAL will likely continue its journey towards $290B and TOTAL2 can cross the current S/R liquidity region and eye $145B.

Conversely, if the current BTC.D support holds it will either mean the market will possibly undergo a correction or the Altcoins will stall and watch Bitcoin soar higher. 

 

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