As the Stock Market reels and has fallen, erasing all gains made in 2018, a glimmer of hope has been seen in the cryptocurrency market. Bitcoin Cash has soared along with Ripple’s XRP, and traders are taking notice. Crypto currencies are seen by many as the new gold or “digital gold” that may serve as a hedge during markey corrections. Global instability in the markets will lead to cryprocurrency gains.
Bitcoin itself is in a triangle pattern and has been trading sideways for a month. Currently sitting at $6,447 with a dominance of 51.7%, it seems the volatile coin could break to the upside. When we look at the technical indicators, it’s within its 50 DMA.
It is generally accepted that Bitcoin found a bottom around $6,000 and needs to trade up beyond $7,000 before a bullish pattern emerges. Bitcoin is the bellwether and driver for the entire market, and the great it’s dominance beyond 50%, the more likely the entire cryptocurrency market will follow. Cult cryptocurrencies like EOS and XRP with large market caps will move first, and if they breakout the entire altcoin market will follow in double digit percentages.
The real driver in my mind are the recent bullish breakouts in the #3 cryptocurrency (XRP) and the #4 cryprocurrency (BCH) based on further adoption and the acceptance of BCH’s hard fork. If Bitcoin breaks above $7,000 and traders run with it, the altcoin market will follow. XRP and BCH will be the altcoin bellwethers and will reinforce this movement.
Bitcoin itself is headed into it’s seasonal low. Traders of the coin are aware that it dips during the holidays and rises around late January. Are you considering gifting anyone with Bitcoin? I am a huge fan of gifting my son with altcoins that will be useful for his future endeavors.