Bitcoin is showing a great strength by keeping on the support line for many weeks with a rebound of even $ 9,600 as it was predicted, however its value has not moved out of its range marked by the Bolinguer’s lines (the range between the support line and the resistance line around the moving averages) (Crypto Market Update 1st week July 2020), since the halving occurred last May.
Currently bitcoin is still at a support line of about $9,000, and the resistance line at just over $10,000.
Given this stability (or low volatility), it is well-known that the probability of further even larger rebounds is high since the price is stable above the support line, taking into account that the 100 and even 200 days moving averages are below the current bitcoin price.Source: CoinMarketCap
As you can see, the BTC's price has been rising over the last week and more sharply over the weekend. The analysts are expecting that the BTC price will rise at its resistance zone, rebound and fall to the previous resistance line to gain support. This way they are continuing with the idea that once the bitcoin breaks the main resistance of $10,000 the upward movement will accelerate and take off.
Relating the crypto market in general, the global market capitalization is still buoyant and growing since March this year, meanwhile the bitcoin`s one is stagnating in a very narrow band, so that the main crypto is losing dominance although the margin is still very large. Global crypto capitalisation has just exceeded USD 300 billion again for the third consecutive time in one year since july last year.
As it can be seen above, the dominance of BTC since the beginning until 2017, when the ICO boom occurred (see article about ICOs) and which continued until 2018 when the ICO bubble burst out. To the point that the altcoins became almost as dominant as Bitcoin as it can be seen in the graph between 2017 and 2018. Before then, Bitcoin had a dominance of 90%, to drop to 40% in 2017 and stabilize in the last two years at 60%. At the moment we are observing a BTC dominance of 61.2% of the entire Crypto market capitalization.
In relation with the altcoins, these had a better performance compared to the BTC, as very good crypto projects have been showed with great push. Indeed, their price has been rising, making lows and highs increasingly high. The Altcoins market considered apart from the BTC has broken the USD 100 billion resistance line for the second time in the last year and this line could become a good support looking for a 125 billion resistance.
Particularly the main altcoin, the Etherium has broken a record not achieved for more than 1 year, which is the fact that it has surpassed the barrier price of 300 dollars, a fact that has not been registered since July last year. In the last week the Etherium has gained more than 30% which has exceeded the bitcoin’s performance. If BTC has risen 2%, ETH has risen 10%, and already has a crypto market dominance of over 11%.
The reasons for this rise may be obvious, on one hand the announcement of the imminent update of its protocol and on the other hand the rise of certain platforms based on the Etherium protocol such as the DeFi crypto finance applications (which we will talk about it in future articles). What it is clear is that the tokens and platforms based on Etherium have more value than the native cryptocurrency itself, the Etherium.
The predictions for ETH are very positive for the rest of 2020 and much better for 2021.
We are witnessing a widespread price increases this week, highlighting that the altcoins and in particular the Ether had a price increase of 10% compared to 2 for the BTC’s one, in a context where the Etherium based applications do not stop growing.
However, the BTC/ETH correlation has been at its all-time high since May this year and is around 88%. When the BTC rises, so do the altcoins, especially the Etherium, which is the queen of all of them.
The rest of altcoins with the best performance were Cardano (ADA) with 11.7%, Litecoin (LTC) with 9.8%, Bitcoin Cash (BCH) with 5.4% and Ripple (XRP) with just over 4.Source: Mind Capital
In summary, the crypto market remains as strong as ever given the stability of bitcoin with its moderate rise and the excellent performance of the altcoins with the Etherium as the leader followed by the tokens based on its protocol. Expectations remain very positive waiting for further developments.