- Bitcoin is poised to shrug off yesterday’s $1,000 drop and tap $10,000 again
- Price drop returned Bitcoin to the mean buy, and narrative remains bullish
- Alts are at the critical $90 billion market cap and look good for further gains
Bitcoin hit the levels I had been anticipating more or less exactly yesterday but couldn’t last the day, dropping back further than it had been before its run through $10,000. Following Bitcoin’s crazy recent price action, which saw $450 million in liquidations yesterday as Bitcoin hit $8,600 on BitMEX, our key points have not changed:
$9,300 is still our key support level if we want to avoid dropping back to the $8,000s for a longer period, and currently we are sitting some $200 above this and making slow gains up, along with the rest of the market.
While some are naturally bearish after Bitcoin failed to hold $10,000, the narrative has not changed for me – we are in a bull market and this is just another of those retracements that happens in a Bitcoin bull market. We can back up this theory by looking at the mean buys going back to the start of the year:
This chart shows that Bitcoin has reverted to its mean buys several times during an upward move and that this is nothing bearish. If anything it is a symptom of the impact of margin trading on Bitcoin’s price. Sharp moves like we had in early March when Bitcoin dropped to $3,850 usually revert to the mean, which is exactly what has happened again here.
Alts Hold the Fort
While most alts naturally suffered in regard to their dollar value as Bitcoin dropped, some have performed well in their Bitcoin comparative, and in some cases both. STORM is a coin I spotted as having potential back when it was at 13 sats and it has pumped to 40 during this period, while XLM continues to tick upwards in both USD and BTC terms.
When we look at the alt coin market cap we can see that alts staged a great recovery, which suggests they have much more upside in them and, crucially, money in alts didn’t leave the market as it does in a bear market:
Looking to the short term future, the alt coin market cap is at the crucial $90 billion level I outlined on Monday:
There is every chance that we will break through this level now, which would allow us to look at an influx of an extra $30 billion into the alt coin space before the next big resistance is upon us.
Given that alts now have some ground to make up following Bitcoin’s dip, this could indeed represent some huge gains in the coming days and weeks.