BTC, dominance and other analysis, 12.26.2021

BTC-USDT, daily chart

Price action: BTC broke bullish the bearish channel, going over the EMA 200 but still below the EMA 50. The downtrend is beginning to stop, favouring another bullish move. It is important for the support at 50k to resist as much as possible, as long as the price bounce up the EMA 50 (where is also the most important resistance at 53k). I'd take a long position only if price regains that level as support. MACD is confirming the uptrend.

RSI indicator: RSI confirmed the accumulation and is still over the 50 level and the trendline, so the accumulation is still in progress.

Volume analysis: volumes continue to be relatively weak and give no signal of trend confirmation.

BTC-USDT, weekly chart

Last candle is a stop one for the bearish trend, but it is not a strong engulfing candle. That is confirmed also by the scarcity of volumes. Dynamic support given by EMA 50 is a valid entry point for scalping trades.

Dominance, daily chart

BTC dominance confirms the downtrend but bottomed on the lowest support from the big dump of May. That situation is confirmed by the huge gains of some top altcoin caps (Luna for example). A new altseason could occur if this strong support is broken below the 40% market capitalization of BTC.

Total market capitalization, weekly chart

From the beginning of the year, crypto total capitalization is in a strong uptrend, with natural retracements on the EMA 50. As long as this trend is confirmed, there is no serious bear market incoming.

ETH-BTC, daily chart

Like the total market cap, Ethereum behaves like litmus test of the whole crypto environment. Recently, ETH broke bullish over the top of the last big dump of May. On a micro view, it seems that a bearish retest is forming given by the descending triangle, but a strong weekly support from 2018 is just below the EMA 50, that is a useful dynamic support anyway.

Recap: in spite of the dumps of the last months, crypto market seems to be in a good position and the shadow of a bear market is still far away. The first thing to keep an eye on is the BTC dominance, that could break below the 40% market cap, starting a new alt season.