Does it make sense to chart the dominance of BTC marketcap over the rest of the crypto market in the same way you would chart a pair like BTC/USD for example?
On the chart is an indicator I made from the Ichimoku Cloud, it simply goes long when prices closes above the conversion line (in yellow) and short when it closes below it.
As you can see, following this indicator blindly would result in positive gains over time were you to take advantage of the signals generated here. The conversion line period is 6 for reference.
I have see a lot of analysts commenting on the dominance chart as a measure of how well alt-coins are doing against BTC.
This is more a question than an idea - does it make sense to apply technical analysis to this chart? Are the rules the same? Why is it different? Why isn't it?
For the purposes of this being an idea, it appears that BTC dominance is currently in a downtrend, is below the yellow conversion line and this is reflecting in the broader alt-coin markets
On the chart is an indicator I made from the Ichimoku Cloud, it simply goes long when prices closes above the conversion line (in yellow) and short when it closes below it.
As you can see, following this indicator blindly would result in positive gains over time were you to take advantage of the signals generated here. The conversion line period is 6 for reference.
I have see a lot of analysts commenting on the dominance chart as a measure of how well alt-coins are doing against BTC.
This is more a question than an idea - does it make sense to apply technical analysis to this chart? Are the rules the same? Why is it different? Why isn't it?
For the purposes of this being an idea, it appears that BTC dominance is currently in a downtrend, is below the yellow conversion line and this is reflecting in the broader alt-coin markets