- Bitcoin’s drop from $9,800 to $8,800 was not surprising and not bearish in itself
- Bitcoin’s fall will allow money to flow into alts, as we have seen with OMG
- SC one of many alts looking great right now
After Bitcoin failed to break through and maintain the $10,000 level, a drop to the $8,800 level was not surprising, even without the 2009 ‘Satoshi wallet’ excitement. With Bitcoin needing time to reset, many alts are looking primed and ready to let us enjoy a mini alt season. As we saw with OMG, all we need is a catalyst, and sometimes not even that, to register some serious gains.
Bitcoin Needs to Regain $9,250 For Immediate Upside
Following its $1,000 drop, there is a key zone we need to be on the lookout for:
As we can see, bulls will be looking for a return to the $9,250-$9,400 area if further gains are going to be realized in the short term. Breaching these levels will likely see a return to test the range high of $9,900.
On the other hand, a failure to recapture this level will result in a drop to the mid $8,00s, with $8,500 a strong target. Even if this happens however we can still afford to be mid term bullish, and this would be a good area to long.
Bitcoin’s drop has also had an impact on Bitcoin dominance:
Source: cryptodaytraders.io
Bitcoin dominance has now registered a third lower high in a row, a definite pattern that offers further evidence that an alt season should be on the way. We have already seen certain alts running, and should Bitcoin dominance continue to drop to the 64% level or below we can look forward to some more OMG-style gains.
ETH/BTC Looks Good as Alts Rev Their Engines
As usual we use the ETH/BTC chart as an indicator of alt strength, and we can see that it too is looking bullish:
Source: cryptodaytraders.io
We can see the gravity of this move on a higher time frame:
Source: cryptodaytraders.io
At times like this we look for coins with catalysts. MATIC has a mainnet launch coming up, and as a result it has held up very well throughout Bitcoin’s drop. OMG has obviously come and gone, but even those without catalysts are looking good. One of these is SiaCoin (SC) which is looking primed for a jump:
Source: cryptodaytraders.io
We have seen this coin pull some serious moves, and it looks ready to do so again, with a 3x not impossible in the right conditions.
SC is just one of many alts looking great right now, with their BTC and dollar comparatives looking to make gains while Bitcoin recovers, giving us the chance to remember what a true alt season feels like!
