- Bitcoin is engaged in a slow and steady grind back to the top of a short term wedge
- Alts are largely stagnant following Bitcoin’s uncertain position amid wider geopolitical events
- Uniswap plays are a trader’s best bet for gains in the coming days and weeks
Bitcoin continues to make steady progress back towards the trendline from which it rejected five days ago, with slim pickings to be found among alts. However, with the U.S. Dollar Index looking prepped to make a new run in the coming days and weeks, it seems like Uniswap coins could be a trader’s best bet for the foreseeable future.
Bitcoin Approaching Two Sentiment Tests
Since falling to $10,373 last week, Bitcoin has slowly traded back up to $10,650, putting in higher highs and higher lows in a sign of short term strength, setting itself into a wedge:
A continuation of this pattern will see it approach the top of this wedge within 48 hours or so, which will represent the next test of its strength. A rejection would not be disastrous for Bitcoin, although it would probably mean a return to the supporting trendline before engaging in another try. Remaining above the 2018-set trendline is critical to ensure that the overall picture remains bullish, which is the case all the way down to the $9,400 area.
Breaking above this trendline would obviously be good news but would lead directly to another downtrend that began on August 17 when Bitcoin topped out at around $12,500:
A break and hold past this trendline and the way is clear to test the $12,000 barrier.
Dollar to Wreck Recovery?
Part of the reason why Bitcoin has been able to recover so well is that the U.S. Dollar Index has stalled temporarily, although as we can see this could only be a short term reprieve:
The DXY has clearly turned resistance into support and looks to be steadying itself before a continuation of the uptrend this week. As we know, this would very likely have a negative impact on Bitcoin, potentially delaying the recovery for weeks or even months depending on when it tops out.
Uniswap Still the Place to Be for Alt Trades
The alt market is also suffering from Bitcoin’s uncertainty, with only a few players such as CEL, ZIL, and XRP making worthwhile gains. Uniswap coins are faring better however, with players like NYAN, DNYAN, HIPPO, and DARK making serious headway.
As long as Bitcoin remains uncertain the large and mid-cap alt market will too, leaving low caps and Uniswap plays as the only place that traders can make anything like substantial gains right now.
Alt season already seems a long time ago.