Bitcoin dominance rate sets new yearly high
Already today on CoinMarketCap bitcoin’s (BTC) dominance rate rose to 46 percent the highest level since way back last December 20. BTC also clocked a two-month high of $7,820. Bitcoin looks to grow its gains further according to the key dominance rate. The rise in the rate means that bitcoin is more in demand than other cryptocoins. The dominance rate has increased from 40.5 to 46 percent in just the last month.
Bitcoin has rallied from June 25 low
During the last four weeks bitcoin has rallied from a low of $5,755 on June 25 to as high as $7,820. The fact that this rise happened while there was a sharp rise in bitcoin’s dominance shows that bargain hunters are likely to be betting that bitcoin prices will rise further and are not buying the coins to invest in other cryptocoins. If the latter were the case dominance of alternative cryptocoins over bitcoin would rise.
The sharp rise in bitcoin’s dominance rate could show that investors have confidence in the recent price rally.
Chart analysis
BTC price could soon find acceptance above the key 100-day moving average (MA) barrier and cross beyond the $8,000 mark in a convincing manner. At press time 11:00 BTC was trading at $7,700 on Bitfinex. This represents a gain of 3.4 percent in just the last 24 hours.
The rally post-inverse head-and-shoulders break out had run out of steam in the last five days around the 100-day MA, and establishes this MA as a key technical resistance. If the price closes above this mark of $7,610 this would be a further sign of a stronger bull market, and open the window to an advance to the 200-day MA of $8,720.
The four hour chart shows the BTC price is stuck in a broadening wedge. This is a continuation pattern, An upside break would revive the rally begun on July 17 at the low of $6,740 towards the next major resistance point of $8,720.
The 50-candle, 100-candle, and 200-candle all are trending up and favor the bulls so an upside breakout is favored. However, if the broadening wedge should be breached to the downside the
CoinDesk projection
CoinDesk outlook on the basis of its analysis: “A spike in the BTC dominance rate validates the short-term bullish outlook. A convincing break above the 100-day MA of $7,610 would only bolster the already bullish technical setup and could yield a test of 200-day MA of $8,720 A break below $7,190 (broadening wedge floor) would invalidate the bullish view.
Present Situation
Bitcoin opened on July 23rd at $7,396 and flew up to a high of $7,785. Its low was just $7,374. With the day almost finished at 23:29 UTC the price was still high at $7,723. Over the day, this is a rise of 4.42 percent. This is well above the 100-day MA of $7,610 so according to CoinDesk’s analysis we could see a test of the 200-day MA of $8,720. At least we can expect a further advance and a testing perhaps of the $8,000 level,
The present price of bitcoin can be found here.
