Bitcoin Inches Closer to $15k as BTC Dominance Decimates Altcoins
John P. Njui • BITCOIN (BTC) NEWS • NOVEMBER 5, 2020
Summary:
- Bitcoin has continued on its bullish climb above $14k
- BTC just hit a 2020 high of $14,785
- Such levels were last seen during the 2017/2018 bull run
- Bitcoin market cap dominance has continued to increase at the expense of altcoins
As the world’s focus is glued to the 2020 US Elections, Bitcoin is making major moves last seen during the 2017/2018 bull season. At the time of writing, Bitcoin is trading at $14,750 – Binance rate -and after printing a yearly high of $14,785. Bitcoin’s current push up could very well be the beginning of the journey to $20k and possibly a new all-time high value.
What the Bitcoin Chart Says
A quick glance at the daily BTC/USDT chart reveals that Bitcoin is in parabolic territory similar to that witnessed in December of 2017 and May 2019.
Chart courtesy of Tradingview.com (Click image for larger view)
In terms of resistances, Bitcoin has very few of them ahead as it attempts to break the December 2017 all-time high value at $20k. The obvious resistances lie at the following levels last witnessed in 2017.
- $14,750
- $15,000
- $15,500
- $15,720
- $16,500
- $17,125
- $17,490
- $18,050
Also from the daily chart shared above, it can be observed that Bitcoin’s price is very much above the 50-day, 100-day and 200-day moving averages. The daily trade volume is also in the green, with the daily MACD exhibiting an overbought situation. The daily MFI is also considerably high at 67.2.
Bitcoin Continues to Dominate at the Expanse of Altcoins
However, the current overbought scenario that Bitcoin is exhibiting might not mean much given that FOMO might already be in play for BTC. A good way of gauging how much capital is invested in Bitcoin is the BTC market cap dominance chart which clearly shows an increased interest in trading the digital asset.
A while back, it was pointed out that if the Bitcoin dominance exceeded 63%, altcoins would continue to suffer in the crypto markets. Revisiting the same dominance chart reveals that Bitcoin’s dominance is currently 65.89. What this means, is that the price of altcoins will continue to suffer as this value continues to increase.
Bitcoin dominance chart courtesy of Tradingview.com< (Click image for larger view)
Additionally, and given the continual institutional interest in Bitcoin, high chances are that BTC continues to be the fan-favorite of this category of investors through the rest of 2020 and possibly the first two quarters of 2021. As a result, altcoins led by Ethereum (ETH), will have to wait till the focus is away from Bitcoin for them to thrive.
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Original article posted on the EthereumWorldNews.com site, by John P. Njui.
Article re-posted on Markethive by Jeffrey Sloe