2017 Redux: Bitcoin Marches Relentlessly Higher Eating Altcoins, $6,400 Next?
Back in the build up to the massive bull run at the end of 2017 Bitcoin and altcoin markets were inversely correlated. One would surge at the expense of the other as traders switched between the two assets. Now that we have so many stablecoins to choose from, that correlation should have diminished but today it is as strong as ever.
Bitcoin Surges to New 2019 High
Bitcoin has added a further three percent on the day to surge to a new 2019 and six month high of $6,290 during Asian trading this morning. BTC has not fallen back below $6,000 since it broke that barrier early yesterday and volume has increased to $18 billion as it pushes ever higher.
I feel, in this moment, I am 2017. pic.twitter.com/GUqUlYXqGw— The Crypto Dog? (@TheCryptoDog) May 10, 2019
Since the same time last Friday Bitcoin has made an epic 12 percent, outperforming nearly all of its underlings. As a result its market dominance is the highest it has been for 17 months at 58.3 percent. The last time BTC had such a large share of the crypto market was in mid-December 2017.
Bitcoins monumental rise, around 66 percent since the beginning of the year, has come at the expense of the altcoins which are getting hammered today. Ethereum is still flat but its market share has dropped below 10 percent. XRP keeps dumping as the Ripple keeps increasing the supply, it is now below $0.30 and many of the major cryptocurrencies are in pain dumping between 3 and 8 percent on the day.
BTC to $6,400 Next
Bitcoin trader going by the twitter handle SalsaTekila predicts a further move to over $6,400 before any kind of pullback. This was the most traded price of 2018 so the possibility is a strong one as it is only $150 away from current prices.
$BTC 3D close is undeniably bullish, 6400$ is a key level. White dotted area is now support which bulls need to hold for trend to remain valid.
$BTC 3D close is undeniably bullish, 6400$ is a key level. White dotted area is now support which bulls need to hold for trend to remain valid. Still side-lined from margin positions for now, week-end fast approaching. pic.twitter.com/59ivCin7VW— SalsaTekila (JUL) (@SalsaTekila) May 10, 2019
Weekends are usually sluggish for trading activity on crypto markets but if Bitcoin can hold above $6,000 then further gains are very likely. Observations from Bleeding Crypto also call for more gains as orders stack up;
$BTC Looks like they are stacking up the fuel for BTC to run. Over $60 million dollars in sell orders/fuel for BTC to continue its run. We have seen this in the past post and 9 out of 10 times it climbs higher. Lets see if this time it acts as resistance or fuel.
$BTC Looks like the are stacking up the fuel for BTC to run. Over $60 million dollars in sell orders/fuel for BTC to continue its run. We have seen this in the past post and 9 out of 10 times it climbs higher. Lets see if this time it acts as resistance or fuel. Will update later pic.twitter.com/rrWACv4PxX— Bleeding Crypto (@Bleeding_Crypto) May 9, 2019
There could be a number of things driving the surge fundamentally. Bitcoin bull Tom Lee has highlighted a few of them as markets elsewhere fall back on fears of Trumps escalating trade war;
In a period where: —political tensions escalate between US and China, —global equity markets fall sharply —VIX largest spike in many months —global yield curves flatten/invert#bitcoin has RISEN and >$6,000 Crypto showing its value as an uncorrelated asset.— Thomas Lee (@fundstrat) May 9, 2019
Crypto markets do look uncannily similar to Q3 2017 when Bitcoin surged at the expense of altcoins. If there is to be a repeat of the big spike later this year or next this could be the best time to load up on alternative crypto assets.
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