Bitcoin

Bitcoin Bulls Taking Over While Altcoins Bleed

By Aishwarya Nandan

Posted on May 5, 2019

Bitcoin had increased its dominance from slightly below 50% from the start of April to current level of 52.3%. It had yesterday crossed $5700, which is 5 months high and its market capitalization has crossed $100 billion.

This reflects that the market’s focus has shifted back on Bitcoin after the market had experienced initial rally by the altcoins from the low levels. Therefore, as long as Bitcoin stays strong, the recovery of the cryptos will be on track.

Bitcoin gaining importance can be reflected by the fact that LedgerX, which is the United States-regulated crypto derivatives and clearing platform is planning to launch physically-settled Bitcoin futures contract that will be targeting now the retail investors. As per LedgerX’s believes, Bitcoin’s market capitalization is only equal to that of a large stock, therefore the involvement of huge institutional is unlikely, hence, they should focus on the retail investors.

Meanwhile, Corporate Traveller, which is the largest travel management firm in the United Kingdom, had received requests from their clients and has started to accept Bitcoin payments.

BTC/USD Price Analysis

Bitcoin (BTC) has bounced from the support at the level of about $4,914 on April 15 and has crossed $5700, which means that BTC is showing strength and the investors have gained confidence and are buying on dips as the crypto is closer to support. The bulls seems to be in command now as the moving averages are trending up and the RSI is close to the overbought zone. BTC can now move up above $5,900.

It was projected that if the bulls fail to push the BTC/USD pair above the level of $5,404.82, BTC may then remain range bound for sometime between the levels $4,871.2 to $5,404.82. The sentiment and momentum will weaken BTC price falls below the level of $4871.16. In this scenario, BTC may fall to the 50-day SMA.

BTC had fallen by more than 5% to the level of about $5,000 on April 25 after the New York Attorney General’s office alleged that Bitfinex had lost $850 million and had used a secret loan from affiliated firm Tether to hide the loss. But BTC had again bounced up from the crucial 30-day moving average (MA) resistance on April 30 and was trading at $5,350 on Bitstamp.

Therefore, the consensus has built in the market place that BTC will likely to reach the level of $6,000 in the short-term.

Altcoins

Altcoins value relative to Bitcoin has fallen considerably. Any altcoins that only have a trading pair with BTC have fallen exceptionally hard.

ETH/USD

Ethereum (ETH) had fallen below the 20-day EMA on April 15 but then had bounced back the next day itself, whichshows buying at lower levels.

If the ETH/USD pair sustains above the level of $167, it can move up to $187.98. On the downside, the support level is at around $156.42, below which the 50-day SMA may fall.

LTC/USD

Litecoin (LTC) has been struggling to move up the 20-day EMA, which shows a lack of buyers at higher levels. LTC will now try to fall below the 20-day EMA and $74. If successful, the correction can extend to the 50-day SMA. LTC is having strong support closer to level $62, if it falls below this support it will turn the trend bearish.

Overall, Bitcoin is gaining but Altcoins are still struggling