Bitcoin is continuing its grind up towards $8,000 having broken out of its nine-day downward channel, with the quickly approaching halving offering a fundamental driving force. But will it be enough to push on to higher values in advance of the halving, and will alts get a look in either way?
Bitcoin Breaks Out
Bitcoin’s $750 push yesterday took it out of the downward channel that had been on the verge of eliminating the gains made in the first week of April, seeing it rest around the $7,050 region:
Some took this as a sign that things were about to get green for Bitcoin, with a new base established from which it might continue upward into the halving:
$8400 $BTC prior to halving in May 2020
— ๑ RAMEN ๑ (@NoodleofBinance) April 16, 2020
Others however were not quite as hopeful:
$BTC The daily isn’t really super bearish, we should’ve closed below $7000 for that but it’s awfully close to how the $10k top played out.
I’m still just chilling waiting for something more obvious. pic.twitter.com/OWcmBlunh8
— DonAlt (@CryptoDonAlt) April 17, 2020
No need to flip bullish, as long as it’s below 7197 pic.twitter.com/En61J6hYfJ
— MURO (@MuroCrypto) April 13, 2020
While undoubtedly a bullish move in itself, these kinds of sharp rises and sharps drops a few days later have been in evidence for some weeks now, often ending with the Bitcoin price reversing back to where it was, which is why it’s hard to get too excited about the recent jump – it could just as easily go back down again at any time.
Alts Well Placed to Move
With Bitcoin seemingly range bound, what are the odds of alts seeing a temporary rally? Bitcoin dominance clearly topped out around mid-March and has been trending downwards ever since, with a clear trend line being established:
However, after looking like it was going to take another hammering, Bitcoin poked back up above the trendline to suggest that an alt rally may not be on the cards quite yet. There is of course the chance that this is just a stay of execution and alts may yet get a chance to run, especially if Bitcoin continues to range as it has.
Ethereum, often the bellwether for alts, has been reacting very well to Bitcoin’s moves this month, making more percentage gains than the Big Orange and making two higher highs and two higher lows on the moves so far:
This is bullish for alts in the short term, assuming BTC doesn’t suddenly dump out of nowhere, and means we could be in for some nice alt plays in the coming days and weeks.