Digital asset markets have been mostly stable over the weekend with Bitcoin holding ground above support at $8,000. That all changed a few hours ago when the world’s most popular cryptocurrency fell below support again as its market dominance begins to dwindle.
Bitcoin Drops Below $8k Again
Bitcoin has made several attempts to break through resistance at the mid $8k level since its big dump a fortnight ago. However, they have all failed. As the bulls run out of steam, the bears have started to step in to push the asset below the psychological support barrier of $8k.
BTC is currently sitting around $7,950. The next move will be crucial as a failure to hold here and bounce back to $8k could result in a more massive dump back to $7,500. Falling below this is entering dangerous territory and a return to crypto winter as there is no support until $6k.
Not All Are Bearish
BTC is still holding support – it has not broken down just yet. Trader and analyst ‘Crypto Welson’ remains bullish and is looking to invest in Bitcoin from current levels by opening long positions.
“It’s a new week, and Bitcoin is at support. I’m opening long positions in this area, in preparation for a movement upwards this week! Things are looking bullish, although that would be invalidated if we dropped below support,”
#Bitcoin: It's a new week, and Bitcoin is at support.
I'm opening long positions in this area, in preparation for a movement upwards this week!
Things are looking bullish, although that would be invalidated if we dropped below support ($7700) 📊 pic.twitter.com/Q0k2d1YBvR
— Crypto Welson 📊 (@CryptoWelson) October 7, 2019
A more exciting development is the drop in Bitcoin’s dominance to below 70%. The chart is clearly showing that it has peaked and poised to fall back. One trader tweeted on the apparent pattern in the dominance chart over the weekend;
“Even a noob can see it breaking down. What that means, simply, is altcoins are about to pump.”
Time For Altcoins?
Altcoins remain mostly flat this Monday morning, they have not dumped alongside their big brother just yet, and some are posting reasonable gains at the moment.
Ripple’s XRP has added a rare 5% today in a push to $0.27. The XRP Army are rejoicing on crypto twitter, but their celebrations could be premature. The token is one of the worst performers of the year so far and is still lulling around an 18 month low. XRP has a long way to go yet.
Ethereum is holding its ground above $170 at the moment but has yet to make an independent move or push back to $200. Bitcoin Cash and Tron have added a couple of percents, and Chainlink is on a roll at the moment with a pump of 10% on the day.
The action is starting to bubble up for altcoins, so this week could be all for them for a change.