Bitcoin Dominance Rises as Market Cap Moves Out of Cryptocurrencies

The rising dominance of Bitcoin amid a drop in its price indicates that the market cap is moving out of cryptocurrencies as a whole.

This shift may be happening while the US dollar index gains strength.

Should We Exit Crypto?

Overnight, our CryptoBalanceBot portfolio of cryptocurrencies experienced a 20% hit to their stop loss, and we sold those investments back into Bitcoin.

Our system will move us out of Bitcoin and back into US dollars as Bitcoin prices fall below the 4-hour exponential moving average.

The pro alerts may hold their Bitcoin long positions until the stop loss is hit, even if the exponential moving averages cross.

Currently, we are in a gray zone, our system is still recommending that we prepare for a potential cryptocurrency bull market against Bitcoin prices, and yet we must keep our risk management top of mind at this stage.

As we transition through this gray zone, we continue to filter the coins we are holding.

Our altseason co-pilot has successfully filtered us from taking action on potential bottom formations until they are confirmed before entering a signal.

Meanwhile, the pro alerts are looking to front-run the confirmation of the trend change and take additional risks by opening positions on more aggressive entries like the 123 formation on the 4-hour time frame.

Adjust Your Tolerance For Volatility

While volatility is normal and expected in cryptocurrency trading, the parameters of our trading approach aim to provide space for the volatility while managing risk.

If prices make a bottom formation and then range sideways, the pro alerts system may experience many entries and exits.

What To Expect Next

Every coin that hit a stop loss overnight is on our high-alert list to maintain observation for a return to a buy signal. However, it may take a few days to a week to review the effect that the stop loss levels had on the trading system.

I Moved Stops Up Close

Intentionally moving the stops closer to price levels reduces possible risks but also narrows the parameters that the system allows for volatility. The intent was in keeping with the Ultimate Crypto Risk Control Rule!

In other words, by moving up the stops, we reduced the volatility that the system anticipates, resulting in a churn of trades, extra work, and perhaps some avoidable costs?

As we manage risk more tightly, we have more work to do in watching the markets, rather than leaving our money to do that job.