Bitcoin has tested a five-week resistance but failed to break out, while alts continue to head towards a key point at which they can continue to run. Bitcoin is still yet to resolve a long-standing wedge, and in doing so is allowing alts a chance to regain some dominance and continue to push on.
Bitcoin Rejected Back into Channel
Bitcoin has been engaged in a downward channel since its inability to hold $10,400 at the start of June:
There have been two failed breakouts in that time, and yesterday saw a third attempt rejected, ensuring that Bitcoin continues to bounce within the range with no end in sight. A swift retest of this $9,350 level is possible this week, but past experience tells us that a drop back down to test support at around $8,700 is very much on the cards before another try.
Another perspective shows us that on a higher time frame (1 day) Bitcoin is still trapped within a wedge whole support dates back to the end of May:
The wedge has a good chance of being resolved this week, which means after a period of very low volatility we should soon see an explosive move. With traditional markets going into beast mode it wouldn’t be a surprise if Bitcoin were to follow and make another attempt on $10,000.
Alts Knocking on the Door
Alts meanwhile have enjoyed Bitcoin’s rejection and are heading once again to the promised land in terms of Bitcoin dominance and market cap. The key $92 billion market cap we have been looking to regain since mid-June could be on the horizon again, which would lead to alts enjoyed another leg up:
Equally, Bitcoin dominance has dropped towards a crucial level for alts, edging closer to the 64.5% region that would represent another milestone in opportunities for alts:
We have seen some alts continue to push on in the current environment, in particular LEND and VET in recent days, with many others such as DOGE and LINK reporting double digit gains. If these two key levels can be reached for alts then we will undoubtedly see more alt action, unless Bitcoin goes on a tear and redresses Bitcoin dominance.