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After hitting the range bottom bitcoin looks to be heading higher once more. Altcoins are following suit.
It is only a week since bitcoin made a new local high for this year and some of the altcoins made some excellent gains from the bottom. A week is a ridiculously short amount of time but it has to be remembered - this is crypto, and large moves up or down can often take place in days, hours, or even minutes.
Bitcoin did test the nerves at one point though. A wick on the daily time frame took the alpha cryptocurrency down to $29,600 at one point, but this touched a slightly upwards trendline which began on June 22, becoming the third touch of this particular support.
Now back over $30,000, the bulls are looking to drive bitcoin back to test the $31,000 to $32,000 major resistance once more. In order for the bull market to really be confirmed, this is the equivalent of the Pyrenees mountain range that must be crossed.
Altcoins bounce better
With bitcoin taking the initiative again the altcoins have also woken up and some are outdoing bitcoin quite handsomely on the day so far. The Total 3 market cap (total value of all cryptocurrencies after excluding bitcoin and ethereum) has risen $8 billion since Wednesday and is about to test the top of the down channel it has been in since mid-June of 2022.
A breakout of the channel potentially allows the altcoin market cap to rise to the next resistance at $407 billion, another $47 billion from here. Bitcoin Dominance is a very important factor. This experienced a sharp drop a week ago and has been forming a potential bear flag since then.
The dollar continues to show weakness
USDT Dominance is one more element to the puzzle. USDT fell through the upwards trendline it has been adhering to all the way back to November 2021. It did come back to test the line and make it resistance so it should start to decline from here. Currently at 7.10%, the next support for USDT Dominance is at 6.44%.
Finally, looking across at traditional markets, the Dollar Index (DXY) has been falling since September last year, as the US stock market heads in the opposite direction. If the DXY confirms 100.2 as resistance, a further decline to 94.5 would be where it will next find support.
It might seem as though the stars are aligning for bitcoin and the cryptocurrency sector. If the major resistance at $32,000 can finally be broken and bitcoin can hold above, blue skies until $36,000 are beckoning.
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.