The breakout of the crypto lead currency Bitcoin may end the sideways phase in favor of the bulls.
The overall market also benefits from the rising Bitcoin exchange rate. However, the BTC dominance continues to trend sideways due to the emerging strength of the Altcoins.
Bitcoin (BTC): Volatility causes Bitcoin to jump back and forth between USD 10,150 and USD 11,100
A first decision was made this week. The bulls managed to dissolve the week-long sideways corridor upwards and initiate a subsequent rise to as high as $11,740. In the last two trading days, the BTC price corrected slightly and is currently quoted at USD 11,423. For the time being, there is a good chance of a further increase towards the USD 12,000 mark. Only a drop back below the USD 11,099 at the end of the day would again cloud the chart.
Bullish scenario (Bitcoin exchange rate)
If the bulls manage to stabilize the BTC price above the green box, they will most likely start a new attempt to rise towards the resistance at $11,806 in the coming days. A breach of this chart mark will immediately draw attention to the pink resistance line at $12,088. A break above this chart mark on a daily basis will activate new bullish price targets at $12,307 and $12,492. A renewed bearish resistance is expected in the area of the August high. If investors manage to take advantage of the friendly mood in the overall market and also manage to break through the USD 12,492 mark dynamically, a break through to the maximum price target at USD 12,912 is also conceivable.
Bearish scenario (Bitcoin price)
The bears could not use the directionless movement of the last weeks to build up sustainable sales pressure. As long as no reversal formation is formed, the bears are at a disadvantage. Only when the BTC price slides back below the $11,099 mark could this be a false breakout on the upper side. If the Bitcoin price subsequently also falls back below the EMA20 (red) at $11,007, the first target price on the underside is $10,803. If this support is also abandoned, the range between 10,613 US dollars and 10,535 US dollars is of central importance. Here, the EMA100 (yellow), a horizontal support-line as well as the green upward-trendline are positioned. Within this area, a strong resistance by the bulls is expected.
However, if the bears manage to push the BTC-price beneath this cross-support and also break the trend low at $10,360, the lower edge of the trend-channel at $10,052 moves back into the investors‘ focus. This is also where the moving average of the last 200 days (EMA200) (blue) runs, which is why this support level should be seen as the maximum price target on the bottom for the time being.
Bitcoin dominance: Bitcoin cannot gain market share despite strong performance
Bitcoin dominance represented on the basis of values from Cryptocap
Despite the bullish breakout from the sideways phase, the reserve currency cannot gain any dominance. Instead, the BTC dominance continues to trade between the key support at 58.80 percent and the massive resistance level at 60.58 percent. As a result, the Altcoins have benefited similarly from the recent bullish movement and Bitcoin is not able to significantly increase its dominance.
Bitcoin Dominance: Bullish Scenario
Over the week, the BTC dominance is trading almost unchanged at 59.86 percent, just above its 20-day moving average (EMA20) (red). All eyes continue to show cross-resistance from EMA100 (yellow) and horizontal resist at 60.58 percent. Only when this price level is overcome on a sustained basis will the chances for the reserve currency to stabilize its dominance above the 60 percent mark increase. The first resistance above the key resistance is waiting at 61.20 percent (super trend). A break of this chart mark makes a test of the moving average of the last 200 days (EMA200) (blue) at 62.02 percent probable.
If this resist is also dynamically overcome, the next price target at 63.24 percent is activated. So far, Bitcoin’s bullish movement in the last few days has had no significant impact on its dominance in the overall market. Investors also seem to be increasingly investing in other promising block chain projects and sectors such as the DeFi sector.