Bitcoin is no longer a trillion dollar asset as it trades lower to $49,841 at the time of writing this article Saturday morning. 4 Billion dollars of liquidations again took place in 24 hours time yesterday, April 23rd, 2021. Digital Futures markets see deepened fear as taxation rumor concerns continue to surface and as BTC approaches key levels over the weekend. Keep in mind when trading BTC & other Alt coins, the different metrics to follow.
1) Gold & Silver prices - Gold/Silver will always be Crypto's biggest competition. Keep an eye on Gold/Silver over Ethereum and other ALT coins to see where exactly the money is going.
2) Bitcoins 150 day moving average - A metric to always keep and eye on as traders look for it as a key level of reference. Since Bitcoin passed my $51,700 bottom level, we are now looking at $41,000 as the new bottom. ($41,000 was a January high)
(Historical Chart) 2017 - Once it passed the moving averages back in the spike of 2017, the game was over! And it went back to 3K.
(Historic Chart) 2020 -2021 MM Test - Last time the moving averages were tested like this was back in January. The 50MA acted as a bottom and BTC went to all time highs weeks later.
The 150 day moving average is sitting around the 40,000k level as well, so this is very critical level for the next weeks price action. Many traders went short April 17th*
3) Market cap Dominance (BTC.D) - Here you can see Bitcoin's market share against the rest of the Crypto market.
ADD THIS TO YOUR WATCHLIST!
(BTC.D) is currently trading at 51.99, which means Bitcoin is about 52% of the entire crypto currency market. This metric is important to follow because you get a clear visual on where the money is going. If you see this Index go below 50.00, I anticipate the Alt coins breaking all time highs.
ALTERNATIVE COINS TO WATCH
(Next Blog I will dive in to each one) stay tuned....
4) MVRV Z - Score of Bitcoin
One of our co founders, (Creighton Chaney) uses this method when trading, its success rate has been superior to others over the years. The MVRV z- score uses blockchain analysis to identify periods in which Bitcoin is extremely over valued or undervalued. Using the realized cap and Market cap against the Z score is very effective.
Written by: Cameron Cole
More info on our sources
Market cap Dominance (BTC.D)
MVRV Z - Score of Bitcoin