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Bitcoin (BTC) Rally Continues, Alt-Coins Remain Under Pressure

Bitcoin (BTC) Rally Continues, Alt-Coins Remain Under Pressure

Nick Cawley, Senior Strategist

Bitcoin (BTC/USD) Prices, Charts, and Analysis

  • Bitcoin’s short-term market dominance increases.
  • Alt-coins underperform in the short term.
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Bitcoin has rallied the best part of 50% over the last three weeks with any sell-off quickly reversed as buyers stepped in and bought the dip. BTC has also out-performed the rest of the crypto-currency market – aside from the odd alt-coin – with its market dominance growing from just over 40% to a current level of just 47% in the last month. We have discussed the reasons why Bitcoin’s outlook looks positive before and while these remain – especially the potential for futures-based Bitcoin ETFs – then Bitcoin is likely to chug higher, pulling the market capitalization along with it.

Bitcoin (BTC) Grinding Back to Multi-Month Highs, Volt ETF Offers Crypto Diversification

Cryptocurrency Market Total Capitalization – October 12, 2021

Chart via TradingView.com

Since Bitcoin broke above trend resistance at the end of September/start of October, BTC/USD has moved sharply higher, with any pullbacks bought quickly. BTC/USD now sits near resistance of a short-term bullish flag formation which is keeping the pair moving higher. As long as this continues, with higher highs and higher lows dominating the trend, then Bitcoin will soon make an attempt on the double-high printed in May around $59.5k. This level, and the psychological $60k price, may act as short-term resistance but it is unlikely that it will hold as Bitcoin attempts to make a fresh all-time high above $64,850.

Bitcoin (BTC/USD) Daily Price Chart - October 12, 2021

The alt-coin market remains weak with a lot of the larger names down between 10% and 20% over the last seven days. Binance Coin (BNB) is down 10.5%, Solana (SOL) is down 16%, Terra (LUNA) is down 20%, while both Chainlink (LINK) and Polygon (MATIC) are down around 12%. While Bitcoin continues to grab the headlines, the alt-coin market may have further to fall before steadying.

What is your view on Bitcoin – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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