The new year has been merciful to many major cryptocurrencies as they registered growth, making the market green. The world’s largest cryptocurrency, Bitcoin [BTC], at the time of press, rose by 3.14% over the past 24 hours.
The coin was valued at $3,881.89 with a market cap of $67.7 billion. The coin registered a 24-hour trade volume of $4.8 billion with a hike of over 2% over the past seven days. The coin is still climbing up the hill with 0.82% over the last hour.
As per the one-hour chart of BTC, the coin observed an uptrend from $3814.61 to $3904.83, followed by a downtrend from $3914.04 to $3724.04. The coin is offered support at $3664.31, with immediate resistance at $3841.90.
Parabolic SAR hints towards a bullish market as the markers align under the candlesticks.
Awesome Oscillator indicates a bullish market gaining momentum.
Chaikin Money Flow points above zero, marking a bullish market.
The one-day chart of the coin points towards a massive fall from $6146.01 to $3195.71. A minuscule uptrend was noticed from $3184.28 to $3691.87, with a resistance marked at $4075.34. BTC was offered support at $3184.28.
Bollinger Bands appears to be at a diverging point, indicating increased volatility in the market. The moving average line is under the candlesticks, thus marking a bullish market.
MACD line is above the signal line hinting towards a bullish market.
Relative Strength Index indicates that the buying and selling pressures are evening each other out.
According to the indicators, Awesome Oscillator, Parabolic SAR, Chaikin Money Flow, MACD line and, Bollinger Bands, a bullish market is predicted.
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Fall in Bitcoin’s market dominance may be correlated to the fortunes of the altcoin market
The trends set by virtual assets have always highlighted the cryptocurrency market’s inherent volatility and spontaneity. Prices lack symmetry and rarely exhibit consistent growth as different factors come into play to dictate an asset’s valuation.
At press time, the world’s largest crypto, Bitcoin, had stormed past the $11,000 mark and was consolidating to push for a surge over $12,000. The rest of the altcoin market however, apart from one or two minor hikes here and there, has been relatively quiet after collectively surging in the early part of the year.
At the beginning of 2019, a significant number of crypto-assets performed significantly well in a group, wherein most assets demonstrated a prominent hike in their values with little to minor price corrections.
A majority of tokens doubled their valuation until Bitcoin breached the $6,600 resistance. Subsequently, altcoins failed to keep pace as Bitcoin continued to test more resistance limits in the market.
At present time, Bitcoin enjoyed an unprecedented 62 percent dominance in the cryptocurrency market. As its dominance primes itself to climb over the 63 percent mark, many in the community speculate this could be red flags for the altcoin market.
Major cryptocurrency enthusiasts and analysts have stated that altcoins could significantly capitulate if it so happens. However, past events offer a sliver of hope for the altcoin market.
According to CoinMarketCap, the altcoin market has been significantly affected whenever BTC’s dominance has fallen. During the bull run of 2017, Bitcoin enjoyed a dominance of 65 percent and the global market cap hit a value of $402 billion. However, in January 2018, when BTC dominance plummeted, the global market cap peaked at around $710 billion. The dominance was down by half, whereas the global market cap had almost doubled.
A major reason for the same was money funneling into other altcoins after witnessing a shift in momentum from Bitcoin to the rest of the crypto-market. The present market situation may take a similar path once BTC’s dominance falls, opening the door for other virtual assets to take advantage of the scenario.
However, the present rise of BTC is backed by much more certainty than the bull run of 2017. Hence, a repeat of the January 2018 period may be unlikely, and will happen if and only the market sentiment shifts gears drastically towards altcoins.
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