BTC Rides Support

Neither this post nor any other post on cryptofal.com should be taken as financial advice. It is not.

Over the past week or so, BTC has been coiling as it tests support and resistance all within a week.

This coiling/consolidation pattern above support has been occuring since the large dip earlier in December. The MFI is currently in neutral territory after attempting to trend upwards since the end of November.

The MACD is attempting to swing into positive territory, however momentum is still fairly neutral. With this in mind, this could mean that things could really go in either direction currently depending on how strong this support holds up. Volume has been decreasing over the past several days as well, which could mean we may be settling in this area.

The overall cryptocurrency market is currently at $2.2 trillion with BTC dominance at 40.4% and ETH dominance at 21.1%. This means that altcoins are taking some of the inflows of money coming into the space today with a decrease in ETH dominance and a hold in BTC dominance.

The ETH to BTC ratio is continuing its uptrend in BTC. Not only is it establishing higher lows, so far it’s also continued to establish higher highs. This could mean that ETH could still continue to outpace BTC in the comimng month or so. If this trend continues, we may see ETH prepare to test all time highs in its ratio to BTC in the coming months. Currently, it is testing areas of resistance that have not been touched since 2018.