- Bitcoin’s rejection of $10,070 is likely just a bump in the road and we should break it next week
- Bitcoin dominance has been rejected at a key level, which could give alts a small window
Bitcoin has failed to properly overcome the $10,000 barrier and has seen a drop to $9,570 in response, but there are still plenty of reasons to be optimistic that we can get back above it. Meanwhile, a rejection of Bitcoin’s dominance at a key level could be about to signal a mini alt window.
Bitcoin Expected to Bounce
The strength that took us from $3,850 to $10,670 has not gone away, and there still seems to be an appetite for further upside. I expect us to bounce either in the current $9,600-$9,800 region or even as low down as $9,300, with $10,400 still being a very likely target:
Source: Crypto Day Traders
Source: Crypto Day Traders
This bullish hypothesis would be invalidated were Bitcoin to sink below $9,300, at which point we could say that the halving top is in and we would be looking at retracement levels. However, I do feel Bitcoin has one more bounce left in her before topping out. Anyone who has witnessed a Bitcoin bull run knows that 40-50% shakeouts are not uncommon.
Bitcoin Dominance Rejection Might Open Up Alts Window
With Bitcoin making its mind up, there is a window where alts will be able to shine. Some already have, such as ZRX and BAT, and we can look at the Bitcoin dominance chart for further evidence of what might be about to happen:
Source: Crypto Day Traders
Having topped out at just shy of 69% Bitcoin has now seen a third lower high on the weekly timeframe, illustrating that, despite its dominance in terms of percentage gains, Bitcoin has in the main been ceding market cap dominance to alt coins for that past eight months.
Should this trend continue and take us down to the 68% area we can expect some further growth from alts, with big caps likely to run first as always. However, with a big move expected from Bitcoin any day now, especially with the halving only a matter of hours away, any alt trades should have tight stops to ensure that they don’t get steamrolled by Bitcoin or dragged down with it.
