The last couple of days have brought uncertainty into the market. After a weekend in which Bitcoin played “dead”, seeing no price action, the week began with Bitcoin dropping below $4,000. Now, certainly has come back to the market and the drop from the start of the week has been corrected.
In the last couple of hours, a fresh wave of green has swept the market and seen a majority of coins soar. Bitcoin is at the time of press soaring by more than 3% and exchanging for about $4,070. This price move has been a strong and positive response from the bulls given a bearish scenario could have easily seen Bitcoin drag back to $3,800.
The surge from around the market has seen the total market cap climb from around $137 billion, to that is at the time of press more than $142 billion. This sees the market recover the loss from the last two days. If the upswing momentum can persist, we should soon see the market test the $145 billion levels.
Now A Retest Of The $4,200 Resistance Position
Though the bulls have managed to get prices back above $4,000, the real test remains at the $4,200 position. Given the past week’s attempt could not even go past $4,100, $4,200 is proving to be a tall order for the bulls. Though today’s rebound revives short-term bullish sentiments, there is a need to extend this to a more long-term setup.
Signals including a high bullish volume, weakened bearish setup in the short-term and Bitcoin’s continued drop in dominance show that right now could the best opportunity to rally above $4,200.
At the time of press, Bitcoin is enjoying a strong bullish volume of over $11 billion in the last 24 hours. In dominance, this has continued to drop in the last couple of hours and is at the time of press standing at 50.4%. For the last couple of days, investors have continued to move towards altcoins giving a sense of belief that there is a rally on the horizon.
In the next couple of hours and days, there could be more action to come and we could see a retest of some key resistance positions.