Summary:
- Bitcoin continued its bullish rise above $ 14k
- BTC just hit a 2020 high of $ 14,785
- Such levels were last observed during the 2017/2018 bull run
- The dominance of Bitcoin’s market cap has continued to increase at the expense of altcoins
As the world’s attention is glued to the 2020 U.S. election, Bitcoin is making big moves last seen during the 2017/2018 bull season. At the time of writing, Bitcoin is trading at $ 14,750 – the Binance rate – and after printing an annual high of $ 14,785. Bitcoin’s current upward push could very well be the start of the journey towards $ 20k and possibly a new all-time high.
What the Bitcoin chart says
A quick glance at the daily BTC / USDT chart reveals that Bitcoin is in a similar parabolic territory to that observed in December 2017 and May 2019.
In terms of resistances, Bitcoin has very few of them ahead as it attempts to break the December 2017 all-time high at $ 20k. The obvious resistances lie at the following levels last seen in 2017.
- $ 14,750
- $ 15,000
- $ 15,500
- $ 15,720
- $ 16,500
- $ 17,125
- $ 17,490
- $ 18,050
Also from the daily chart shared above, it can be seen that the price of Bitcoin is far above the 50-day, 100-day and 200-day moving averages. The daily trading volume is also in green, with the daily MACD showing an overbought situation. The daily MFI is also considerably high at 67.2.
Bitcoin continues to dominate in the Altcoin expanse
However, the current overbought scenario that Bitcoin is exhibiting may not mean much as FOMO may already be in play for BTC. A good way to measure how much capital is invested in Bitcoin is the BTC market cap dominance chart which clearly shows increased interest in trading the digital asset.
Some time ago, it was pointed out that if Bitcoin’s dominance exceeded 63%, altcoins would continue to suffer in the cryptocurrency markets. Revisiting the same dominance chart reveals that Bitcoin’s dominance is currently 65.89. This means that the price of altcoins will continue to suffer as this value continues to rise.
Furthermore, and given the continued institutional interest in Bitcoin, it is very likely that BTC will continue to be a fan favorite of this category of investors for the remainder of 2020 and possibly the first two quarters of 2021. As a result, altcoins led by Ethereum (ETH), will have to wait until the focus is away from Bitcoin for them to thrive.
