As Bitcoin Rejects $10,500 Resistance, Will the Bullish Pattern Emerge? Altcoins Take Marketshare from Bitcoin as Cryptocurrency Marketcap Soars $5 Billion
Bitcoin rejected $10,500 amid the massively bullish year it has had so far in 2020. After rising more than 40% so far this year, we saw a predictable but disappointing drop. Bitcoin's rejection of the resistance has revealed the trajectory of the altcoin resurgence and we can speculate what may happen next.
Bitcoin's chart and technical analysis indicated a move to $11,000 was possible. The move this year has been fueled by anticipation of the historical catalyst that is the rewards halving, instability in global markets and adoption by institutional investors.
Bitcoin and the altcoin markets are moving in such a way that suggests altcoin season is in force. The total cryptocurrency marketcap has increased to $305 billion while Bitcoin's market dominance has further decreased to 61.5%. This seems to indicate that altcoins are attracting more attention, and investors are likely moving money from Bitcoin gains into the speculative market. As stocks has underperformed and look shaky outside of tech, cryptocurrency is the next market yield-starved investors are tapping.
Bitcoin will likely drop before the rewards halving and then rise to new highs after. This was the historical pattern that we saw in 2016 that led to the bull market of 2017.
An interesting signal in the market is Ethereum's surge overnight. Ethereum has gained 6% as Bitcoin has retraced, further supporting the altcoin resurgence and the drop in Bitcoin's market dominance. Technicals support a $300 Etheruem on momentum. As traders pile into the cryptocurrency market, Etheruem is likely a good bet for short-term gains. Hats off to XRP investors as well who saw a 10% rally to $0.32.
The bull run we have seen that began last week is looking overbought, and the $10,500 rejection may signal a short-term drop. Traders are pulling out in anticipation of the $11,000 support, and sub $10,000 is possible. Stay liquid and watch as we see a potential $9,000 Bitcoin for value plays in the cryptocurrencies we saw rocket during the altcoin run. Look at EOS, TRX, ETH and LTC.
Sources:
Originally published in my Publish0x account I own at:
Also published on my Steemit and Weku accounts I own.
Picture from Pixabay.
https://coinmarketcap.com/
https://www.coindesk.com/400-drop-bitcoin-faces-correction-after-rejection-at-price-hurdle
