It was surprising for us to see that the Bitcoin just shoot through the 150 day MA. We consider this is a really good sign that bullish momentum is back, and that soon the price might be climbing even higher. As of now we could imagine Bitcoin either to climb to the next target right away or to retrace first and then possibly continue. What we are looking in this set up is the 150 moving average, which hasn’t been penetrated on such a momentum for the entire bearish period.
Today we have also looked at the chart of the Bitcoin dominance. If you look closely, you can see a nice bounce up from the bottom trend line of the pattern. That would explain the surge of Bitcoin in comparison against most of the other alt coins. We are surprised the the influence of recent hacks and hack rumors had no effects on the bullish momentum. Would it be possible that people move into the Bitcoin, because they expect ETF to be aproved? Possible, though we believe that all the excessive alt coin gains are currently being absorbed by the BTC. As you know, most of the altcoins are traded against BTC. In this sense it works as a store of value in the cryptocurreny world. A gold of the emerging digital economy.
The last graph for today is the DAI/BTC graph. We are looking at this chart, because it shows us that stable coin broke down from the pattern. That would further suggest that Bitcoin will continues higher and surprise everyone, even us. If you decide to take on a long positions, be beware of how the price evolves. If we stay above 150 day moving average, we could see more gains ahead of us. At longer time frame though, the price might still retest lower levels and continue trading sideways until it is finally decided whether the bulls are back or whether bears hold an upper hand on the bulls. If we don't consider the already mentioned exchange hacks, the adoption of the block-chains during the bearish times has significantly risen. With Bitcoin speeding up it's transactions with the lightning network, it's very possible that BTC might get more adopted by the commercial sector. We can't forget to wish you a safe trading and hope that the last article gave you good targets if you chose the bullish scenario.
It is possible that Bitcoin might also fail to confirm the yesterday's bounce and money will flow into other altcoins. We will soon share with you altcoins that would be good to trade if the dominance breaks the trend line. Until then, let's see how it evolves!
