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With a backdrop of further Israeli attacks into Gaza, the supposed risk asset of cryptocurrencies is staging a rally.
Now firmly above the all-important 200-week moving average, bitcoin is resolutely climbing higher. Currently at resistance at around $29,250, the alpha cryptocurrency is leading the way with the vast majority of cryptocurrencies also in the green.
An unlikely bitcoin rally?
Bitcoin is continuing to surprise many financial analysts. Those who are very firmly embedded in the traditional financial system must be watching bitcoin with something akin to horror and amazement as the cryptocurrency asset persists in proving its doubters wrong.
Source: Trading View
A key level is met
However, at least for this rally, the moment of truth has arrived. The resistance level here is very strong, with support/resistance touches that go all the way back to early January of 2021.
There is also the overhanging spectre of a potential bearish head and shoulders that might yet unfold, the measured move for which could take bitcoin all the way back to test its base at around $19,000.
Huge forces must be in play here though, as investors who fear a melt-down in bond markets and a crash in equities start to put some of their wealth into bitcoin, an asset completely outside of the carnage of the traditional monetary system.
Should bitcoin manage to punch through resistance here, an assault on the local high set in mid-July could be a target. If a huge surge were to happen, the top of the current upsloping channel might be reached at around $34,000.
Bitcoin dominance rising
It definitely is a case of bitcoin leading the altcoin pack. Bitcoin dominance is continuing to climb, and having made a higher high, is now showing that bitcoin has 52.5% of the entire crypto market cap.
USDT dominance is once more below the upsloping trendline it has respected since early November 2021. That said, it is still holding above both the 200-week and 50-week moving averages. A break below these averages could see USDT dominance diminish significant
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Author: Laurie Dunn
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