Market update: dominance of Bitcoin, $BTC and $ONT

First week of April has left the market with very varied results. $BTC during past 7 days remains stable with a result very close to 0%. Some tokens such as $ONT, $CRV or $ENJ achieved results of over +10%. In the case of $ONT it was well exceeded as we will see below, and other tokens such as $RAY or $STX generated losses of almost -10%.

This situation of low general volatility, except for a few specific cases, leaves us with an overall result of +1% market growth, but with a slight decrease in the dominance of $BTC, which begins to bounce from resistance as we can see in your graph.

This decline in dominance at the top of the sideways channel may be a slight rebound in search of strength to attempt a new test of resistance, or on the other hand it may be the start of a rejection move in search of a new rising low in the trend of the last half year. If this bearish rejection occurs while the total capitalisation chart breaks its resistance, we would enter a growth phase for altcoins, but it is still too early to consider this scenario. 

Despite the decline in dominance, $BTC has left a new test at the $29K resistance, which continues to be respected and leaving slight bounces in the upper zone of the widening movement that has been triggered since the January rally.

Therefore, the scenarios raised in previous posts for $BTC remain in force, both the option of a bullish breakout movement in search of $32k (which would require a strong entry of buying volume and that currently seems more viable in the medium term), and the option of a rejection of resistance, which would be confirmed with a low below $26. 5k, which could take us to the $24k-$25k area, as a pullback to the Shoulder-Head-Shoulder figure that we have been discussing in recent weeks.

Regarding the rest of the market, this week it is worth highlighting the evolution of $ONT, Ontology’s token generated a growth of +40% in less than a day, going from trading at $0.24 to the $0.35 it peaked at last Thursday.

This move generated a break of the higher high at $0.31, leaving a rising high in the short term trend. However, this momentum was not enough to break the long term resistance we will see below and it stopped at $0.35 and retraced back to the area of the broken high, where it is currently.

If we look at the lower part of the chart, we can see how the volume grew exponentially at the time of the breakout, so it increases the likelihood of a bullish response that at least tries to test that resistance again or even manages to break it, setting its first target at $0.40 and giving rise to a trend reversal formation that would be confirmed with this breakout. Although it should be noted that this resistance is a strong area that has not been overcome since last August, as we can see on the daily chart, it would have to maintain a growing volume to be broken.

So the short-term optimistic scenario could differ if trading volume decreases, giving way to a downward movement in search of a new rising low, which could reach from $0.26 to $0.20, since below this price the uptrend of recent months would be broken.

Finally, remember that nothing discussed in our articles can be considered as investment advice. Everyone must do their own analysis and develop their own trading strategy. The BELOBABA team only shows analysis and investment tools, and how they help us in our operations when making decisions.