Bitcoin domination ends now?
Following our previous idea on BTC/USD, it continues to trade in the green zone, which was spotted between the $5755 resistance and $4835 support.
Long term
The long term buying opportunity might have already presented itself, which at any time could invite large institutions to buy the mighty Bitcoin. But at the same time shorter timeframe should be observed more closely.
Risk taking
Today BTC/USD has tested a new lower low, hitting $5265, where it touched the downtrend tend line for the second time. The nearest resistance has been established at $5755, that is the lowest low, established back on the 24th of June. Clearly the downtrend is dominating and there are no signs of the reversal to the upside. Buying BTC is very risky at this point, nevertheless, there will be those who prefer to take the risk.
Bitcoin domination
The question is; what is the use case for the Bitcoin in the coming months and years. Back in the January 2018 the transaction cost for BTC was around $10 for BTC, that was nearly the same as a bank wire transfer cost. Also, sometime BTC transactions were taking more than a month for confirmation, that is simply unusable for many businesses. This could have been the starting point of the end of Bitcoin domination in the total market cap.
Alternative to BTC
Many altcoins provide solution to the BTC speed and transaction const issues. Some offer almost instant transactions with almost free transaction costs. These are the coins that could be adopted more widely in the future, thus taking a huge chunk of BTC market cap. Obviously, in this case, BTC capital could be migrating to other coin/s, which as a result, can bring the new cryptocurrency King dominating the market.
BTC downtrend
At this point we can only guess if or when this will ever happen, but considering such scenario could push the price of the Bitcoin much lower. Looking at the current state of the BTC price development, trend remains bearish . Nevertheless, there was no clean and confirmed break and close below the $5755 support. Yes, the spike has been produced below the $5755, but only daily close below the $5432 (today’s low) could confirm the downtrend continuation.
The support
The nearest support is seen at $5133, which his the 161.8% Fibonacci retracement applied to the corrective wave up after breaking the uptrend trendline . Next support is at $4835, which is 78.6% Fibs, as per the previous idea on BTC/USD. Seems that the key support area will be near $4835, while break below this level will rise more questions rather than give any answers, but perhaps it is a little premature to consider this scenario.
BTC uptrend
On the upside, the resistance is seen at $5755 (previous low), which if broken should push price further, up to $7100 area. This is the 88.6% Fibonacci level, that corresponds with the upper trend line of thedescending channel .
But all-in-all, price to be expected to range between the $5755 and $4835. Break above the resistance of below the support could shed more lights on further price development.
See the latest prices across multiple exchanges at https://www.cryptaldash.com