The Crypto Week – The Bulls Defy Gravity and the DoubtersThe Bitcoin bulls deliver, with talk of a return to $20,000 beginning to do its rounds. Stellar’s Lumen and Ripple’s XRP are missing out at the moment…
What a week for the Bitcoin bulls…
Bitcoin rallied by 10.66% on Saturday. Following on from a 2.82% gain from Friday, Bitcoin ended the day at $7,125.1.
For the current week, Monday through Saturday, a 17.9% rally has taken Bitcoin to levels not seen since early September of last year.
Bullish throughout the day on Saturday, Bitcoin rallied from an intraday low $6,438.7 to a late intraday high $7,279.0.
Steering well clear of the major support levels, Bitcoin broke through the major resistance levels on the day.
In spite of a late pullback, Bitcoin managed to avoid falling to sub-$7,000 levels and hold above the third major resistance level at $7,011.03.
The Rest of the Pack,
Across the rest of the top 10 cryptos, it’s been another mixed week.
Leading the majors through to Saturday was Bitcoin Cash ABC. A 24.5% rally on Saturday gave Bitcoin Cash ABC a 22.4% gain for the current week.
Alongside Bitcoin and Bitcoin Cash ABC were Litecoin and Ethereum, with current week gains of 18% and 19.4% respectively.
Bucking the trend was Binance Coin, which tumbled by 12.9% through to the end of Saturday. Binance’s Launchpad platform was expected to compete with Ethereum for the ICO market.
The gains in Ethereum have ultimately come at the expense of Binance Coin and we are likely to see the trend continue.
Another coin that has lagged the broader market is Ripple’s XRP. In spite of team success in terms of adoption, there has been a lack of interest throughout much of the year. Ripple’s XRP continues to struggle at $0.33 levels to leave the extended bearish trend firmly intact.
By market cap, Ethereum has put some significant distance between itself and number 3 ranked XRP. The question will be whether Bitcoin Cash ABC can knock Ripple’s XRP off its perch. There’s some way to go, but if the current trends persist, then it will only be a matter of time…
At the other end of the table, in spite of the Binance Coin reversal, BNB remains at number 7 by market cap. The once market favorite Stellar’s Lumen is now on the cusp of falling out of the top 10. Tron’s TRX could move back into the top 10 if Stellar’s Lumen continues to struggle.
On the news wires, the latest Bitcoin hack appears to have had very little influence, as the bulls take another bite.
The Bitcoin gains have been attributed to next year’s halving event and a number of industry events kicking off next week.
As for Bitcoin dominance, it’s now up at 58.7% with the total crypto market cap up to $215.47bn. 24-hour trading volumes have also surged, now up at $97.61bn…
At the time of writing, Bitcoin was up by 0.99% to $7,195.9. A relatively choppy start to the day saw Bitcoin fall from a morning high $7,224.9 to a low $6,950.1 before finding support.
While Bitcoin left the major support and resistance levels untested, sub-$7.000 support was evident early. The move back through to $7,100 levels delivers a strong message to the broader market.
Leading the way through the early hours were Bitcoin Cash ABC and Litecoin. The pair were up by 4.11% and by 2.96% respectively, at the time of writing.
Elsewhere, Stellar’s Lumen and Ripple’s XRP continued to struggle, with intraday losses of 4.4% and 0.08% respectively.
For the Day Ahead,
The Bitcoin bulls will have set $7,400 as the next target for the recovery that has now extended from mid-December’s swing lo $3,215.2.
A move back through to $7,250 levels would give the bulls a run at $7,400 levels later in the day.
Bitcoin is looking to form a near-term bullish trend and a breakthrough the 62% FIB of $6,408 would do it…
Any move northwards by Bitcoin would likely continue to support the broader market and Bitcoin Cash ABC and Litecoin in particular.
Market laggards Ripple’s XRP and Stellar’s Lumen could lose more support should they fail to breakout from current levels. The pair have continued to struggle and there have been few signs of a shift in appetite for the duo.