Bitcoin Remains Bullish Despite Short Term Support Loss

Reading Time: 2 minutes
  • Bitcoin lost short term support but still remains in a bullish position
  • Bitcoin dominance still declining, offering alts more room to grow
  • Alt market cap is same as mid-December 2017

Bitcoin has lost short term support but still remains in an optimistic position, while alts continue to benefit from a declining Bitcoin dominance. A comparison with the alt market of 2017 shows that the current alt coin market cap matches mid December 2017, illustrating the current health in the market and the growth potential ahead of us.

Bitcoin Loses Support But Remains Bullish

Bitcoin lost short term support yesterday afternoon, dropping through to $11,650, but in a sign of strength it rebounded straight back up to the support level again:

Bitcoin price chart 1

However, it was unable to reclaim this level, entering back into neutral territory and forcing us to look at the next support line:

Bitcoin price chart 2

This support line clearly tallies with the key moving averages – 100MA (blue) and the 200MA (yellow). As long as Bitcoin is above these levels then we can consider ourselves in bull market territory. The situation is even more evident on a higher time frame:

Bitcoin price chart 3

As we can see, Bitcoin has technically been in bull market territory since it swept through the 100MA and 200MA on April 29, and there is no reason to think that this will revert back on a technical or fundamental basis.

Alts Look Good for Further Gains

Bitcoin dominance threatened to rebound toward the end of July, but since hitting 64.5% it has collapsed once more, which is explained by the further gains in alts across the board this month so far:

Bitcoin dominance 4

The alt market therefore remains buoyant, and there are no signs that Bitcoin could be set for a longer term recovery of its dominance, aside from the odd spike here and there.

Having breached the key level of $120 billion, the alt market has continued to rise along with alt dominance, knocking on the door of $140 billion last week:

Alt coin market cap 5

It seems only a matter of time before June 2019’s total of $141.82 billion is broken, after which we will be looking at 2018 levels. For comparison with the 2017 bull run however, which is how many people will gauge alt performance, the alt coin market is currently the size it was in mid-December that year, which was getting on for the peak of the 2017 rally.

Statistics like that really help put the current cryptocurrency market in perspective – we are already matching December 2017 for alt market value and very nearly Bitcoin value too, and we’re still in the recovery phase. That should give you an idea of just what fireworks could be to come.