Bitcoin (BTC) Dominance Jump after Price Spike, Analysts Cautious
- Bitcoin (BTC) up above $6,000 adding 12.4 percent
- Divergence in volumes despite strong fundamentals
Analysts are throwing caution to wind warning investors that prices may correct lower in days ahead. All the same, Bitcoin (BTC) bulls are firm, trading above $6,000, rejecting lower lows and up 12.4 percent in the last week.
Bitcoin Price Analysis
After a long, dilapidating winter, bulls are back, and to that end, it is a new milestone for the world’s most valuable coin. Although there are different sentiments on matters price, it evident that the overall feeling is bullish and well, price is secondary.
Fundamental factors are satisfactory, pointing to a strong wave of higher highs that will not only cement Bitcoin’s position as a new age digital asset, premier internet money and a deserving substitute for Gold as a store of value.
Records from coin trackers indicate that Bitcoin is not only trading above $6,000 for the first time in six months, but its dominance is up. At 57 percent at the time of press, the investor community is confident of what the future holds. The number of Bitcoin public addresses are up and with increasing prices, the network’s hash rate is up 377 percent revealing that Bitcoin doesn’t care about bad news.
With Bitcoin printing new highs, it is evident that the market is upbeat and responding appropriately to yesterday’s hack which Changpeng Zhao said is an “expensive” lesson but still a lesson for them to improve on their security. Unlike previous hacks where intruders took their time before distributing their illicit loot, there is movement.
At spot rates, Bitcoin (BTC) is up 1.8 percent and 12.4 percent in the last day and week. Because of today’s upswing, BTC is now trending above $5,800 and $6,000 for the first time in five months.
If anything, this is a signal, and a bullish signal in that bulls’ momentum is strong, reversing losses of Nov 2018. As a result of this expansion, bears of Q4 2018 no longer hold. In line with our previous BTC/USD trade plan, traders can begin fine-tuning their entries in lower time frames with first targets at $8,500.
Note that BTC bars are banding along the upper BB meaning the underlying momentum is strong despite today’s long upper BB revealing sellers.
Although prices are up, there is a divergence. Participation is shrinking and comparing May-8 bull bar with Apr-25 bears there is an apparent drop in volumes from 19k to 12k while averages are pretty much constant. Ideally, should there be a confirmation of today’s bar cementing prices above $6,000 then it must not only lead to price expansion, but there should be a sharp spike in volumes preferably above 19k or 39k of Apr-3.
Chart courtesy of Trading View
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