BTC/USD, BTC.D (Bitcoin Dominance), AXS/USDT (Axie Infinity), Technical Outlook, Edition #66 (30/07/21)
Bitcoin rejects the USD 40K level again, whilst altcoins bleed as BTC dominance goes back in the rise. Is this our first confirmation of a bull trap playing out?
Bitcoin continues its consolidation under weekly resistance, USD 41-42K, and must close above the range by Monday 12 AM, UTC.
As mentioned earlier, the BTC/USD remains pinned down by the W1 20 EMA (GREEN), and BTC.D was likely to pull back from 49% before continuing higher.
Bitcoin, BTC/USD - 1 Day (D1)
Bitcoin, BTC/USD - 1 Week (W1)
Conversely, if the bears manage to suppress the BTC/USD trading pair long enough and achieve a weekly close below major resistance, then USD 35K must hold.
Additionally, Bitcoin Dominance (BTC.D) primes itself for a bullish reversal to 55% total market cap dominance.
Bitcoin Dominance - 1 Day (D1)
We can see that 49% poses some minor resistance as BTC.D flips 48% into support. However, this pullback may give altcoins a small sigh of relief before selling back to their /BTC pairs in preparation for the next BTC/USD move.
Q-community voters this week request some TA on AXS/USDT. Thus, we see that a pullback is more probable than another extension higher.
Overlaying the Fibonacci retracement tool has identified the key pivot points below. Chasing these highs after some 2000% rally is borderline madness.
Axie Infinity, AXS/USDT - 4 Hours (H4)
Thus, let the AXS/USD pair consolidate and breathe a little longer before deciding to risk capital.
Be very careful with shorting AXS. It is currently generating insane revenue as a game and protocol, which justifies the long interest and the heavy price increase. Proceed with extreme caution. It’s best to wait for key levels.
Bears seem to have given the bulls a hard rejection as this report was being published. It’s best to avoid too much exposure in altcoins, as typically, a BTC correction will also heavily impact altcoins.
See you again for the next update. - q
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