Could Bitcoin (BTC) Keep Rallying Higher?

Bitcoin (BTC) has once again made an impressive move to the upside and is currently trading above $7,500 after breaking the key resistance level of $7,200. The bulls are now expecting the price to rally higher but the outlook still remains bearish. In order for things to change near-term, we would need to see BTC/USD make a higher high and a higher low to invalidate the current downtrend that is still intact. If the price ends up doing that, we would have reason to be bullish not just till $8,000 but even beyond that to $9k or higher. However, it is important to note that the potential move to the upside has to be a sustained rally rather than a pump otherwise it would be of little consequence.

The daily chart for ETH/USD shows the price struggling to break past the key $134.1 resistance level. If the market fails to see further upside in the near future, we would see the downtrend resume and Ethereum (ETH) can be expected to decline down to the psychological support level of $100 when Bitcoin (BTC) declines down to $6,000. If BTC/USD ends up crashing below $6,000 down to $5,500 or lower we can expect Ethereum (ETH) to test its December, 2018 lows and decline down to a double-digit price. At the moment, Bitcoin dominance (BTC.D) is surging higher with no signs of a retracement but we might yet see it decline down to the 200 day moving average if not the 200 day exponential moving average.

Ethereum dominance (ETH.D) is still testing the strong resistance at 7.5%. It is going to be extremely difficult for it to rally past that level. However, if it manages to do that, we could have an altcoin rally at hand. So far, we have seen Bitcoin (BTC) outpace most of the large cap coins in every bullish move. That could soon change if we see a reversal in Ethereum dominance (ETH.D) at least to test the 61.8% fib level or potentially the resistance at 8.23%. If things remain the same, Ethereum (ETH) and other altcoins can be expected to continue to decline much more aggressively when Bitcoin (BTC) resumes its downtrend. Ethereum (ETH) is struggling too hard to hold its ground against Bitcoin (BTC). Until and unless we see a bullish reversal near-term, it is going to be devastating for the cryptocurrency market in general and altcoins in particular.