Bitcoin enjoyed a $500 jump yesterday to ease the risk of falling outside of its six-week upward channel. Despite the move coming on fairly low volume, it nevertheless continues the bull market narrative leading into the halving in May and allowed alts further opportunities to gain some green, which they took.
Bitcoin Eyes $10,000 Again
Having traded predominantly sideways for a week, BTC was at risk of pushing up against the lower margin of the channel it has been trading within since Christmas. Had it continued to trade sideways it would have only had until around February 10 to either push upwards or leave the channel, the latter of which would have been disastrous for bulls.
The $500 jump however has ensured that it has regained the middle of the channel, pushing past the $9,600 resistance and eyeing $10,000 and beyond.
However, the move was done on very little volume, increasing the possibility that a correction lies ahead fairly soon, potentially around the $10,000-$11,000 mark. This would be a perfectly normal outcome after such a prolonged period of upward momentum, with only anything less than a daily close under the $8,500 region being of concern in the short-medium term.
Alts Make Hay
Alts have been enjoying a much anticipated rise along with BTC, with top cap coins including XRP, ETH, and BCH enjoying double digit growth in the past few days, as we predicted a week ago. With Bitcoin dominance consistently losing steam over the past six weeks, it seems that alts have further positive moves in the pipeline as they begin the long road back to their previous levels, although clearly not all of them will achieve that lofty goal.
Despite the days’ long push upwards, sentiment among the crypto community was that things were only just getting started:
The breakout from this thing is likely to lead to the biggest weekly green candle in bitcoin’s history.
Consider yourself warned! pic.twitter.com/QNC3WvHT80
— Crypto₿ull (@CryptoBull) February 5, 2020
— Galaxy (@galaxyBTC) February 5, 2020
One might have expected the Crypto Fear and Greed Index to be going through the roof after a period of green and with Twitter flush with positive sentiment, so given that it’s only sitting at 61 this is definitely a good sign for the next few days:
How long BTC and the top alts have left in the tank no one knows, but for the time being things look set to continue – just don’t get swept up in the hysteria, and stick to your sell targets.