- Bitcoin crossed a major barrier yesterday, finally overcoming $12,000
- The cryptocurrency has mirrored gold’s performance in breaking its bear market downtrend
- Bitcoin dominance also rose, suggesting a reversal and the end of alt season
Bitcoin finally crossed $12,000 yesterday in a sign of strength that it is ready to kick into a full on bull market, although it stopped short of overcoming the final resistance before $14,000. The price action will not be a surprise to anyone who believes that Bitcoin mimics gold, while those holding alt coins are looking set to miss out as Bitcoin has regained center stage in the dominance stakes.
Bitcoin Pushing Against 2018 Resistance
Following Bitcoin’s push yesterday from $11,400 to $12,300, it now sits in a strong resistance band stretching back to 2018:
Unless Bitcoin can manage to burst through today we will see a pullback in this band, possibly even down to $11,500, followed by some ranging before another attempt is made. Given how difficult Bitcoin has found it to break through this range, efforts that date back to June-August last year, this is the more probable scenario before we finally break through and test $14,000.
Gold Comparisons Play Out
The price action since July makes more sense when compared to when gold broke its bear market trendline in 2017:
This price action is almost identical to Bitcoin’s:
As we outlined in a post discussing the parallels between Bitcoin and gold, gold has since gone on to claim all time highs, and many feel that Bitcoin is on course to do the same.
BTC Dominance Kills Alt Season
Uniswap coins aside, alts have been an unattractive proposition for some time, a philosophy that was borne out yesterday as the alt market collapsed as Bitcoin surged. This has reinforced the suggestion of a clear reversal in Bitcoin dominance that began last month:
If this pattern continues, as it seems likely to do, we can officially say that the alt season that began in May is, for now, over, and that it is very clearly now Bitcoin season.