Thoughts on the crypto market on 01/09/2021

Bitcoin has once again renewed highs, now its ATH is at 42125. After that, the main cryptocurrency fell to 38700, but the strait was quickly bought out and for the last 4 hours Bitcoin has been trading in the range of 39600 - 40600. UPD. While writing the Review, Bitcoin dropped to 39200.

Market capitalization 1070 billion, dominance index 70.1%

Everything was calm and positive on the stock markets yesterday.
The S&P 500 rose 0.55% to close at 3824, fresh new highs, the Nasdaq rose 1.03%, and the Dow Jones rose 0.18%. Weak labor market data were ignored by the stock market, but this is becoming the norm lately - markets are growing on data about a weak economy, because it means that more money will be given. Oil rose to 56.25, gold fell by 1849, and the dollar index closed just above 90.

The markets are optimistic and risk appetite.

They took a new maximum on the crypto market, now above 42K. After that there was an attempt to drain, which was bought out, now we are consolidating between 39-40K.

The dominance index is still above 70%, which indicates a high growth potential for altcoins. If Bitcoin is stably holding in the current trading range, or better yet, fixing above 40K, there is every chance of seeing a local alt season over the weekend.

If Bitcoin does not hold above 39,000, and especially if it goes below 38,000, the alt season is postponed for now. But then there is an opportunity to profitably buy the main cryptocurrency, which is also not bad.

Most of the top has already grown (Ether, ADA, BNB). One could also talk about the end of the market cycle, but a high dominance index suggests that the main money is still in Bitcoin, and there has not yet been an overflow into alts. Altseasons, like in January 2018, when any scam grew, will no longer be. We will not see a dominance index below 50%. Not the fact that we will see even below 60%. But the potential of the TOP to grow by 20-30%, with a decrease in dominance to 67-65%, remains.

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Category: Analytics | Views: 94 | Added by: andryvrozhkov | Tags: #Bitcoin #Bitcoin Price #BTC | Rating: 5.0/1
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