After two years of suffering, the recent Altcoin rally has left Bitcoin in its shadow and has finally started a decline in Bitcoin dominance.
Nevertheless, there are positives for Bitcoin, too. A downward channel that has plagued BTC for seven months has been broken, and bullish sentiment is returning.
Altcoins Claw Back at Bitcoin’s Dominance
Ethereum was up by a 10 percent against Bitcoin ETH/BTC - but still behaved conservatively compared with other crypto currencies.
The ETH price is also doing very well against USD year to date. After a long dry spell, it has risen a whopping 30 percent since the beginning of the year.
However, the RSI is currently overbought and a consolidation is expected. An interesting target is nevertheless at $180. Here the VPVR (Volume Profile Visible Range) shows a peak which coincides with the 200 daily moving average (DMA).
On the other hand, there is a support range between $150-160. This range was formed between September and October of last year and was already tested on January 16th at the slight drop in the price to $158.
Litecoin was up by a staggering 20 percent against Bitcoin, while Dash was up an unbelievable 150 percent againt BTC.
As a result of the Altcoin charge, the Bitcoin dominance fell accordingly. Falling below 70 percent, it temporarily tested the July 2019 minimum at 67 percent.
Bitcoin Finally Able to Break Out of Downward Channel
It wasn’t only Alts that performed well, as the Bitcoin price rose against USD.
The downward channel that has been pursued since last summer was finally broken. And with the week ending above $8,000 US, it’s confirmation of a trend reversal.
Strong resistance at $9,000
However, the Bitcoin course has to work a little before new course heights are reached.
The price has been climbing steadily, but met resistance at $9,000, before finally breaking through the 200 Daily Moving Average, and reaching a local high of $9,200.
That was short lived, however, as there has just been a big sell off that’s seen the price drop to around $8,630, which is back below the 200 DMA.
200 Daily Moving Average Could Mean More Resistance
The moving average of the last 200 days was seen as an important resistance standing in the way of new price highs, but with the price breaking through it then shot up to highest highs since November 11th.
The snap drop in price earlier today saw the price drop back below the 200 DMA, which could prove to be the main resistance for the bulls.
So far this year has been very bullish for most cryptos. Bitcoin is up about 20 percent against USD, and most of the big cap Altcoins are up against Bitcoin. With the 200 DMA looking to be resistance for BTC, the coming week could be decisive in the short term market sentiment.
Guest Author: Cristian Abieta