Bitcoin continues to hold its ground while altcoins are feeling the squeeze. Tuesday’s rally resulted in a daily BTC/USD close at just over $7379 providing some much-needed relief for Bitcoin holders.
Wednesday marked the beginning of a downward price correction, with BTC/USD prices reaching as low as $7200 the day when the House Financial Services Committee injected a dose of uncertainty & doubt. The goal was to “examine the extent to which the United States government should consider cryptocurrencies as money and the potential domestic and global uses for cryptocurrencies.”
Rep. Brad Sherman of (D-Calif.) said “We should prohibit U.S. persons from buying or mining cryptocurrencies,” while adding “Mining alone uses electricity which takes away from other needs and-or adds to the carbon footprint. As a store, as a medium of exchange, cryptocurrency accomplishes nothing except facilitating narcotics trafficking, terrorism, and tax evasion.”
The downward price pressure did not last long as BTC/USD continues to eye its $8000 resistance once again. With prices holding at a stable $7400-$7500 range & the overall cryptocurrency market capitalization rose just above $288 Billion.
BTC continues to hold its dominance reaching up to 44,39%, its biggest rise since April 2nd, 2018 when Bitcoin’s price dominance reached up to 45,4% before declining to 36% less than one month later.
Bitcoin’s Rise Spelling Trouble For Altcoins
While Bitcoin rose, altcoins fell. The alternative cryptocurrency market faced the most significant drop in market capitalization since June 26, 2018. Ethereum fell to 17,66% while the remaining reached as low as 22,04%.
This kind of discrepancy comes as no shock to seasoned cryptocurrency traders as it is usually the sign of an impending bull market which could signal even an even sharper decline for altcoins shot term. On the flipside, the last time BTC reached this kind of market dominance (45,4%) the altcoin market witnessed an impressive +123,14% rally (May 4th, 2018).
Technical View Moves to Bullish
Near-term the price momentum remains bullish. A clear breakout above $7600 should lead into $8000 territory. The signal is typically confirmed when price breaks convincingly following an increase in overall volume. As for now, $6800 should continue to provide solid support if the price does decide to take a breather and pullback.
Overall, for the time being, Bitcoin remains king.