The two red days on Monday and Tuesday could be cancelled out as bitcoin and the altcoin market prepare for a bounce. Could this take bitcoin back to test the all-time high?
After a bit of a scare on Tuesday, when $BTC collapsed down to $64,500, the number one cryptocurrency has managed to hold, and is now possibly looking to reverse the losses and regain this lost territory.
$BTC loses bullish trend line
Source: Coingecko/Trading View
Looking at the daily time frame, it can’t be denied that $BTC has lost its bullish trend line which it has bounced from since early February. A daily close on Wednesday below the trend line, and also seeing the price confirm the break is not a good sign.
However, bullish momentum is returning to $BTC as all lower time frame stochastic RSIs have reset, and now the daily stochastic RSI is also almost ready to reset before turning once more to the upside.
The next task for $BTC is to get back inside the triangle formed by the bullish trend line, and the trend line formed by the series of lower highs since the all-time top.
Failure to cancel out the lower high at around $72,000 could lead to a further roll over in price, and lower levels for $BTC.
Altcoin bounce
Source: Coingecko/Trading View
For the altcoins, the Total 3 chart (market cap of all cryptocurrencies excluding $BTC and $ETH) things are looking quite promising. A higher low is being formed, and it just remains for the altcoin market cap to get above the resistance at $776 billion and also cancel out its own lower high.
Bitcoin Dominance decision time
Source: Coingecko/Trading View
Bitcoin Dominance is the chart to look at to see whether it is time for the altcoins. As can be seen in the chart, a decision is coming soon. If there is a break to the upside, dominance could rise even further to 55%. If dominance drops, 52% would allow the altcoins to have a run.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
