Bitcoin (BTC) Price May Rally, Market in Heavily Oversold Territory
Bitcoin (BTC) Price Outlook, Chart and Analysis:
- CCI indicator highlights oversold nature of the market.
- Retail remain heavily long of Bitcoin – are they right?
IG Client Sentiment Datashows how retail are positioned in a variety of cryptocurrencies. See how daily and weekly positioning can affect our trading bias. Bitcoin (BTC) trade data shows 78.7% of traders are net-long, a strong contrarian bearish signal. However, recent daily and weekly changes in sentiment give us a stronger bearish contrarian trading bias.
Bitcoin’s recent heavy sell-off has left the cryptocurrency in heavily oversold territory, according to the CCI indicator (bottom of the chart), leaving the market open to a short-term upside rebound. The July 2 spike-low at $9,640 remains in place for now, and if this remains the case a move back to $10,800 before $11,470 and the recent double-top around $11,900 cannot be discounted. The 50-day moving average, just under $10,000, also remains supportive if it survives a re-test. A decisive break lower could see a re-test of a cluster of trades between $8,600 and $9,600.
Bitcoin (BTC) Daily Price Chart (February 2018 – July 15, 2019)
Bitcoin’s Market Dominance Increases as Alt-Coins Fall Sharply
Bitcoin’s market dominance continues to increase and currently stands around 66% after the latest, sharp sell-off in the rest of the cryptocurrency market. No other alt-coins has a market cap in double-figures with Ethereum (ETH) having a market dominance of 9.24% ahead of third-placed Ripple (XRP) with 4.56%, according to data from CoinMarketCap.
Bitcoin Market Dominance – One Year Chart
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