BTC/USD, BTC.D (Bitcoin Dominance) Technical Outlook, Edition #54 (17/07/21)

Huge inflows into Coinbase, and Bitcoin buy pressure fizzling. Combined with fresh FUD against the worlds largest exchange Binance. Have we entered a bear market?

Buy pressure fizzling out and massive inflows into exchanges. Is this the beginning of the end?

Bitcoin has been sucking in buyer liquidity around support at USD 30K for over two months now, while selling pressure continued rising, as the bears relentlessly charged for a D1 close below USD 31K repeatedly.

Bitcoin, BTC/USD - 1 Day (D1)

Using the D1 20 EMA (GREEN) as a proxy for bullish momentum, we can see just how tightly bears have been gripping the steering wheel. Every attempt of flipping this key EMA into support, to begin a reversal, had been rejected ever harshly.

Fast forward to the present price-action, and the bulls look nothing short of exhausted after their latest defeat at USD 34.5K.

Bitcoin Dominance - 1 Day (D1)

Further, Bitcoin Dominance (BTC.D) shows signs of readiness to rip higher due to the likelihood of a prolonged bear market increasing and 40% total market cap dominance acting as the December 2017 bottom.

If BTC.D continues rising while BTC/USD falls, then the /SAT value of altcoins will decay more rapidly.

Q’s Conclusion

A string of new bearish news plus whales moving unprecedented amounts of Bitcoin into exchanges over the last few days is set to create some extreme volatility. So trade with caution, and ensure your positions are hedged sufficiently.

See you again for the next update.

- q

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