The cryptocurrency market remains in limbo following a 7% drop in the Bitcoin price this week, with opinions divided as to where the market goes next. Yesterday saw some typically crypto-esque action as the Bitcoin price bounced down to $9,400 before rebounding right back up to $9,700, but the end result is that, in the short term at least, there is no naturally obvious direction for Bitcoin, and therefore the market as a whole.
Bitcoin Wobbles After Two-month Uptrend
Bitcoin’s behaviour in the past two days has been symptomatic of a confused market. Bulls will point to the speedy rebuying on the $9,400 dip and the higher high that was painted on the daily yesterday, which is also so far being respected today. A reclaim of $10,000 over the weekend would be a real tonic to the bulls, as it would land us back in the 2020 trend.
On the bearish side however Bitcoin has been beaten back by $9,700 and $9,750 in the past 24 hours, suggesting that there is simply not enough ammunition to regain the channel. The fact that Bitcoin has been outside that channel since Wednesday is not necessarily a bad thing at the moment, but the longer it stays outside it the longer the chances are that the momentum has gone and we need to reset before establishing another channel.
In the trading parlance, from here we can confidently say that the Bitcoin price will either go up or down.
$BTC long update:
Moved stop up into profit below recent swing low that lead to move up above LTF range high. pic.twitter.com/F4t5j0Ra30
— HornHairs ? (@CryptoHornHairs) February 21, 2020
Alts Losing Dominance After Great Run
Bitcoin dominance has been steadily growing since its two flash pumps in the past week. At the 62.5% mark alts were enjoying themselves, but this bump in the road seems to have allowed Bitcoin to reclaim some of its dominance, which is not good news for the alt season we have been experiencing:
Needless to say, should this trend continue then Bitcoin is on its way to reclaiming its throne as we near the halving. Bitcoin has been in this trend for coming up to a week now, so this is no accident. Should we begin to approach the 65% mark it might be time to leave those alts and rejoin the king.