As the Crypto market takes a much-needed breather, Sheldon outlines a vital bull market indicator that traders should keep a watch on.
After testing the range, Bitcoin is now above the 200 day moving average, which is a positive sign, and it will be perfect if it stays above $46,000 as support.
Despite the fact that Bitcoin appears to be breaching the support trend. The trend can be saved if Bitcoin price closes the day around $47,500, and an engulfing bullish candle the next day is required to erase the pullbacks.
The bullish case for the market remains strong as long as Bitcoin is above the 200-day moving average, but it should not fall below that level; if the trend line is broken, $42,000 – 43,000 is another crucial target to consider.
On the 4-hour chart, Bitcoin is extremely near to having a bullish divergence, and if the day closes above $47,500, it should go above $50,000, which is the next major resistance. The next aim for Bitcoin is $60,000 if it breaks the $52,000 – $53,000 zone.
Sheldon believes that the rejection of Bitcoin dominance at the resistance trend line is beneficial because, in the last month, whenever Bitcoin dominance has been weak and dropping, the market has taken a new turn and Bitcoin has become bullish.
USDT dominance, according to Sheldon, demonstrates how much money is coming into USDT or altcoins, and it’s looking strong right now.
DOGE at 25 cents, Ethereum, and DOT if they hold the current trendline, notably Ethereum after breaking out on the BTC pair, are Sheldon’s short term selections for the dips. Other options included KSM, MATIC, BNB, LINK, XRP, COTI, and GRT.
This episode premiered on August 27th, 2021.