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Bitcoin's Dominance Rate Hits 8-Month High
BTC: Price: $6,000 | MCAP: $107 billion | 24-Hr Volume: $16.18 billion
Short-term trend: Bullish
Bitcoin jumped to fresh 5.5-month highs of $6,099 on Bitstamp earlier today invalidating the bearish candle created on Tuesday and establishing another bullish higher high pattern.
A test of highs above $6,500 seen in November last year now seems likely. That said, the 14-day relative strength index (RSI) is again reporting overbought conditions with the price struggling to cross the resistance band of $6,055-$6,100. (BTC had hit multiple daily lows in that range in October 2018).
As a result, a price pullback to the 10-day moving average (MA), currently at $5,633, could be seen before further upside toward $6,500 unfolds.
Long-term trend: Bullish
Bitcoin closed last week above the historically strong resistance of the 50-week moving average (MA), further validating the bearish-to-bullish trend change signaled by the convincing break above $4,236 (Dec. 24 high) on April 2.
Supporting the longer run bullish case is the two-week MACD histogram's positive turn, the first since February 2018. Further, the 14-week relative strength index (RSI) has moved above the key resistance range of 53.00–55.00.
The longer run bullish outlook would be neutralized if the price finds acceptance below the 200-day MA, currently at $4,482.
The trend change, however, looks sustainable as bitcoin's dominance rate, which tracks its percentage of the total cryptocurrency market capitalization, has jumped to 57.14 percent, the highest for eight months, according to CoinMarketCap.
The spike in the dominance rate means the alternative cryptocurrencies have partly decoupled from BTC as investors are buying the cryptocurrency market leader for the long haul and not merely to fund altcoin purchases (which often can’t be bought with fiat).
Had the dominance rate stayed put, the recent rally could have qualified as a speculative bubble, i.e. investors rotating money out of BTC and into cheap altcoins in a bid to make a quick profit.
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Shocked Back To Life BCHSV: Price: $57.51 | MCAP: $1.03 billion | 24-Hr Volume: $142.7 million
Short-term trend: Neutral
Bitcoin SV (BCHSV) is up 9.7 percent over a 24-hour period after bitcoin dragged the rest of the crypto market higher, on Thursday, April 9 at 00:53 UTC.
Indeed, BCHSV's rally comes at a much needed time for any hopeful investors still remaining in a long position who would have gained the most if they spotted the Chaikin Money Flow (CMF) bullish flip on May 6.
The RSI is only mildly bullish bid at 50.1 and with the indecisive doji on the daily chart, it's safe to say a pullback is warranted.
Long-term trend: Bearish
BCHSV will need to increase in greater buying pressure so watch for an uptick in momentum and volume to see if the rally has further legs or if it peters out to resume its primary downward trend.
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Down Down Down WTC: Price: $1.84 | MCAP: $74.5 million | 24-Hr Volume: $3.3 million
Short-term trend: Bullish pullback
The current trajectory for Waltonchain is eyeing off the 61.8 percent Fibonacci retracement zone at around $1.80 after falling below the main pivot point (supports) at 50 percent retracement ($2).
The RSI is fast approaching oversold and may provide a bounce from the 61.8 percent retracement, provided an uptick in volume meets the move otherwise expect a short-lived pullback from the bulls.
Long-term trend: Bearish
The Chaikin Money Flow (CMF) is firmly bid on the sellers side showing greater momentum to the bears, however, the indicator is also showing signs of a reversal to the upside should the bulls follow through on the aforementioned pullback.
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Bitcoin's drop to key support below $5,700 seen earlier this week ended up fueling a rally to new multi-month highs above $6,000, as predicted by @CryptoUB on May 7.
The leading cryptocurrency rose to $6,099 on Bitstamp earlier today, the highest level since Nov. 14, and was last seen changing hands at $6,000.
@CryptoUB's bullish call was possibly based on the higher lows and the repeated defense of sub-$5,600 levels on May 5 and May 6 seen in the above tweet.
It is worth noting that the bullish higher lows pattern would be invalidated if the pullback seen at press time ends up violating the support at $5,562 (May 5 low).
A drop to $5,562, however, may not happen as the price may find bids around the ascending 10-day moving average at $5,633.
Further, the short-term outlook would turn bullish only below the 30-day moving average, which is currently located at $5,365. |
A bull market in bitcoin begins after the price has rallied 100 percent or doubled from the bottom, according to historical data tweeted by @Pladizow.
As of writing, BTC is changing hands at $6,000 on Bitstamp, having clocked a high of $6,122 earlier today. At that price, BTC was up almost 100 percent from the lows near $3,100 seen in December.
If history is any guide, a break above $6,200 could pave for a major bull run.
That said, BTC has also suffered pullbacks after doubling in value from major price bottoms before entering a bull run, as mentioned in the above tweet.
The biggest pullback from 2X bottom price seen till date has been -23.5 percent. If history is to repeat itself, then the price could fall all the way back to $4,800 before entering a bull market above $6,200. |
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| Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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Above $6,000