Bitcoin has broken to the upside and is now establishing itself above the $30,000 level. Is this the beginning of the bull market?
Bitcoin resumes its journey upward
A break upwards and through the resistance of the last four weeks has led to bitcoin now holding above $30,000. Most indicators are flashing positive, so unless we have the bull trap from hell, bitcoin could be on its way to the next resistance at $32,000.
One point of concern does still remain in that bearish divergence is still in play on some timeframes. This has been building since January of this year, and should it play out it would send bitcoin lower. However, if bitcoin continues to rise (as is looking likely) the divergence can be annulled.
Bitcoin dominance still rising
As bitcoin does its thing bitcoin dominance is also rising, meaning that most altcoins are not keeping up with the king of the cryptocurrencies. Currently at nearly 48.5%, a move much beyond this could potentially lead to a rise to the next resistance at 57%, which would put a severe damper on the altcoins.
On the other hand, if BTC dominance does start to reverse, look for altcoins to do their very best to catch up. The next day or two is likely to be very important in this respect.
The total market cap of all cryptocurrencies has just hit resistance at $1.2 trillion. $1.3 trillion, and then $1.5 trillion are in sight. As banks remain mired in insolvency, it’s good to see that the nascent asset class of crypto is coming good.
Ethereum waits its turn
Ethereum is comparatively quiet at this stage. It has hit the top of a rising channel and is holding at over $1,900. If rejected, it could make its way back to the bottom of the channel, which could be around $1,800, or support can also be found at just above $1,700.
If bitcoin dominance does start to roll over, as bitcoin pauses and starts ranging sideways again, then perhaps $ETH will lead the altcoins on a run. However, it will need to break some quite strong resistance at $1,915 first.
Solana is one of the altcoins to have pumped the hardest so far. $SOL put on more than 14% over the last three days, taking it to $22.70. Other than that, altcoins are mainly flat. All eyes on BTC dominance.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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