Bitcoin has reacted positively after bouncing off its 11-week support at the start of the week, making a higher high that suggests a potential reversal in March. Alongside this, alts look poised to potentially perform even better if the Bitcoin dominance chart is to be believed, and if Bitcoin behaves itself.
Bitcoin’s Bounce Needs to be Followed Up
Bitcoin’s strong bounce from its support at $8,420 to $8,920 this week has been an important response from bulls to the danger of invalidating its almost three-month long upward trend, but it remains in a crucial period if we are to see a genuine recovery:
Were Bitcoin to push in from its current $8,700 level and create a higher high then we will be in a great position to think that a resumption of the uptrend is on, but if it is unable to crack $9,000 then a slight reset may be on the cards before it can try again. This doesn’t mean that Bitcoin is doomed, but it does mean that a fourth test of the $8,500 support zone could happen.
If Bitcoin were to close underneath the $8,500 zone then we would once more be looking at the $8,200 region and perhaps lower before a resumption of an uptrend.
Ethereum Holding Firm, and Alts Poised to Gain Dominance
Ethereum has been holding firm against Bitcoin for several days now, although it has been bouncing within an 8% range since February 26 in a sign that it still isn’t sure which direction it wants to take just yet.
To add to this, the Bitcoin dominance chart is set to paint doji candlesticks on two consecutive days, reinforcing the suggestion that no clear direction can be discerned for alts in the short term, although there appears to be a slight downward trending since Bitcoin hit 66% dominance at the end of February:
Some alts have taken it upon themselves to march on however, particularly LINK which seems to move to the beat of its own drum, pushing up to the $4.83 mark and looking like it wants to launch a new assault on the all-time high it set for itself last month.
MATIC and WRX’s performance in the past 24 hours has been down to the positive news coming out of India, otherwise alts in general seem poised to potentially take another chunk out of Bitcoin’s dominance, leading to more green across the board in the coming days and weeks as long as Bitcoin behaves itself.