Bullish Set up for Bitcoin but Underperforms Altcoins so Far

After about two weeks of low-volume trading in a range, the cryptocurrency markets have started showing bullish movements. Although Bitcoin has outperformed for almost all of 2018, the last few days have had altcoins outperforming. One of the best performers was the hard fork of Bitcoin, Bitcoin Cash, which appreciated 20% yesterday amid exchanges announcing it will be supporting the hard fork of Bitcoin Cash.

Despite altcoins outperforming, Bitcoin still holds the majority share of the cryptocurrency market capitalization. Bitcoin represents over 52% of the market capitalization which is currently valued at $211 Billion.

Progression of Bitcoin Dominance Over the Past Year

Bitcoin still trades within the triangle it has been forming for the majority of this year. The pattern is approaching its end and Bitcoin will have to depreciate from here to stay within the pattern. With Bitcoin trading near the upward trend line of the pattern along with the appreciation occurring in the altcoins market, the outlook is slightly more bullish than bearish for Bitcoin currently. The last few weeks have been an entirely neutral outlook with it seeming to have equal chances for either upward or downward movement.

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Bitcoin Triangle Pattern on Daily Chart – Source: Tradingview.com

The hourly chart shows that the majority of the bullish movements occurred during yesterdays price action. This is unusual of recent price action with little activity been seen over the past few weekends. Price has since begun to retrace after a bearish divergence formed between price and RSI. Price went on to form higher highs despite RSI forming a lower high.

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Bitcoin Hourly Chart – Source: Tradingview.com

Key Takeaways:

  • Altcoins outperformed over the weekend, but Bitcoin still represents over 52% of the cryptocurrency market cap.
  • Bitcoin has a slightly more bullish outlook as price action trades near the upward trend line of the triangle pattern it has been forming since March.
  • Price action had bullish activity yesterday but has since retraced since forming a bearish divergence.
DISCLAIMER: Investing or trading in digital assets, such as those featured here, is extremely speculative and carries substantial risk. This analysis should not be considered investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt and associated or linked sites do not necessarily match the opinion of blokt. This analysis should not be interpreted as advice to buy, sell or hold and should not be taken as an endorsement or recommendation of a particular asset.

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