RSI above 70 signals Ethereum might be overbought, suggesting a potential pullback. If MACD crosses above its signal line, it can indicate an upward trend. These indicators work well together to help traders spot entry or exit points based on price momentum.
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Bitcoin dominance refers to the percentage of the total cryptocurrency market capitalization that Bitcoin represents. When Bitcoin dominance is high, it often signals that Bitcoin is leading the market in terms of investor confidence and capital flows. In such times, altcoins tend to underperform, as investors flock to Bitcoin for safety or speculative gains. Conversely, when Bitcoin dominance drops, altcoins often experience a surge in popularity and price, as capital flows into smaller projects. The rise or fall of Bitcoin dominance can heavily influence market sentiment, with investors watching it as a gauge of overall market health and trends. A high dominance generally signals cautious or conservative market sentiment, while a low dominance often indicates a risk-on attitude, favoring higher-risk altcoins.
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Moving averages (MA) help identify the prevailing market trend by smoothing out price fluctuations. When combined with the MACD, which measures momentum, traders get a more comprehensive view of the market. For example, a bullish signal occurs when the MACD crosses above its signal line while the price is above a key moving average, such as the 50-day MA. This combination confirms both trend direction and strength, helping traders make better decisions about entering or exiting positions. Together, they can help reduce false signals and increase the accuracy of trades.
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