Bitcoin (BTC) Bulls Fail To Maintain Bullish Momentum, Downtrend Expected Ahead 

Bitcoin (BTC) Bulls Fail To Maintain Bullish Momentum, Downtrend Expected Ahead 

Bitcoin (BTC) bulls have failed to maintain bullish momentum. The price has failed to break past the resistance at $9,156 while altcoins rallied successfully meanwhile. This is something that we have seen multiple times now. Whenever BTC/USD tops out, we see altcoins rally just a little more against Bitcoin (BTC) and then it all comes crashing down. For the big players in this market, the challenge is getting out of altcoin positions because they have to be traded on regular exchanges, unlike Bitcoin (BTC) which can be bought and sold outside of exchanges without affecting the price. 

So, the real indicator of which way the market could head next is Bitcoin (BTC) and as we can see it has failed to break past the key resistance at $9,156. If the stock market declines today, we could see the beginning of a major downtrend in the cryptocurrency market. This is the last trading day of the week and even though recent Biden wins might have sparked some bullish interest in the stock market again, investors would still be quite uncomfortable holding on to their stocks over the weekend. For the cryptocurrency market, this could be the difference between the next downtrend and continuation to the top of the descending wedge. The latter seems very unlikely at this point. 

Bitcoin dominance (BTC.D) has declined close to the 200-moving average on the 4H time frame. The most probable scenario now would be for it to find support there and begin an uptrend. If it fails to do that and declines below the 200-moving average we would be expecting a potential double bottom, one that could see the altcoin market skyrocket against Bitcoin (BTC). 

The probability of that happening is low at this point but traders might want to be on their toes. The next few months are going to be very important for financial markets across the globe and anything is possible. While I do not see BTC/USD rallying past $12k this year, altcoins could still outperform Bitcoin in the near future if Bitcoin dominance (BTC.D) continues to decline. That being said, I don’t think this is a trend that could continue for long. We are now at a point where Bitcoin dominance (BTC.D) is expected to see a major reversion to the mean which would reverse years of bear-trend in Bitcoin Dominance (BTC.D) and therefore years of bull-trend in Altcoin dominance (Others.D) indicating that the market as a whole could be headed much lower in the months to come. 

Investment Disclaimer
Related Topics: