Bitcoin has shot above $22,000, and most of the altcoins have followed suit and surged up today. The move has followed a month-long period of sideways action, and has tipped the combined cryptocurrency market cap back over $1 trillion in value.
Bitcoin has put on the after-burners this morning and reached almost $22,500 before settling back a tadge. Today’s 8% spike comes as the number one cryptocurrency breaks out of a downward trend that started back in early April.
A higher high on the daily at $22,500 is still waiting to be made, and for bitcoin to really sustain the rally it needs to break out the top of the bear flag it is currently trading in, and maintain the price above.
It might be said that ethereum has helped to lead the current rally. The king of the layer 1s is fast heading up and is set to break through $1,500. Ethereum has really led the way over the last 6 days with a 48% price surge.
Some of the more popular altcoins are also enjoying a rally. Many of these are up 10% and more. Bitcoin dominance is up 0.5% so far today, but the chart tells us that this might be another retest of a rising trendline that has been in play since mid-January. Unless bitcoin dominance breaks back over this trendline then we could see altcoins start to gain ground and dominance start to recede.
Polygon (MATIC) has been one of the major beneficiaries of this rally. Arguably the most prominent of the layer 2 blockchains, Polygon is currently up 18% on the day so far. However, with both the daily RSI and Stochastic RSI starting to register oversold territory on the daily time frame, the high of this present rally for Polygon may be near.
Thorchain (RUNE) is another altcoin up 18% on the day. Although this altcoin has just reached the top of an upwards sloping wedge which is a bearish chart pattern.
Avalanche (AVAX) is continuing its 6-day upward price movement. Up 14% on the day so far, like ethereum, it is also up 48% over the 6-day period. It’s now come up against some heavy resistance so it may need to consolidate for the next few days.
Whether the crypto rally has been caused by SEC chairman Gary Gensler’s remarks that crypto could be exempt from some regulatory rules, or whether it’s just that crypto is following the current upsurge in traditional markets, this rally has given some very welcome relief indeed.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.