Based on a statistics provided by a major crypto industry gauge, the world’s leading virtual coin, Bitcoin has hit a high of $7,820, for two months and is expected to continue soaring high. As by the time this news piece was being written, the dominance rate of Bitcoin has risen to 46%. This is the highest Bitcoin has ever gone since December 2017. The 46% dominance rate for Bitcoin has added much credence to its 20% rally that has been witnessed in the last seven days.
What Does The Dominance Rate Rise Means?
To begin with, a rise in the rate of dominance for this crypto asset simply implies that it more in demand when put in comparison with a host of other digital coins. This new percentage rate was provided by CoinMarketCap, an indicator that is used to track down the entire crypto market capitalization percent that the crypto in question has contributed. In the last four weeks, the rate of dominance for this premier virtual coin has moved form 40.5% to 46%.
As this has been going on, Bitcoin has rallied from $5,755 that was the low for the 25th of June 2018 to the current $7,820. When bargain hunters opt not to purchase Bitcoin so that they can venture into other fairly trading virtual coins means that the rate of dominance for these other coins would rise swiftly over BTC.
Investor Confidence Sign
In the last four weeks, a sharp growth in the rate of dominance for Bitcoin has been witnessed and this implies a lot of things. However, this is highly considered to be a sign of investor confidence especially in the ongoing price rally for Bitcoin.
All signs show that this leading crypto asset could soon receive acceptance above the major hundred-day moving average hurdle. When this happens, BTC would definitely go pass the $8,000- mark in a way that would be so convincing. On Bitfinex, for instance, BTC traded today at $7,700. This represents a 3.4% increase in the last 24 hours.
How BTC has Traded Today
In the last five days, the post-inverse head and shoulders breakout for the rally has been moving out of steam and revolving around the hundred-day moving average. This has, therefore, helped in identifying the Moving Average to be majorly responsible for all the technical resistance. The bull grip can only be made strong by a daily close that goes way beyond $7,610 as it 100-day moving average. This would then usher in an effective 200-day moving average, which, at the moment, is lined up at $8,720.
The Current Situation
As it is now, Bitcoin cannot easily move away from the broadening wedge, and this has been going on for some time. This implies that an upside break would definitely revive the $6,740 July 17th low and create an upside towards the next top resistance that is at a 200-day moving average of $8720.
Since all the 50-, 100-, and 200- candle moving averages are already trending on the northern side, they have been strategically placed one above the other purposely for the bulls.
This is how the market has been lately.