Bitcoin Bulls Break $11K

9/16/20 Crypto Market Analysis

After a steep decline to $10k, Bitcoin has found support at the 128MA (green) seen on the chart above. After a brief period of consolidation, the bulls have retaken momentum and have pushed price beyond $11k. Currently, the sequential indicator is on a green 8 of 9 candle on the daily chart above. Therefore, sequential is nearing overbought territory as price approaches a sell 9 tomorrow. However, the 128MA (green) has acted as strong bullish support throughout historical bull markets. (Seen on the chart below).

128MA Historical Support

BTC/USD 4 Hour

Bitcoin is on a green 4 of 9 candle on the sequential indicator, therefore price is signaling bullish-neutral action for the next 20 hours. Additionally, the bulls have broken through the 128MA (green) which should now act as strong support in the interim.

BTC/USD Weekly

While the sequential indicator has been neutral-bearish on the weekly chart, price has rebounded nicely after last week’s doji candle. 

Crypto Market Cap

The collective cryptocurrency market cap is on a green 4 of 9 candle on the sequential indicator. However, the total market cap has not increased more than Bitcoin on a percentage basis throughout this week’s uptrend. Therefore, Bitcoin has been the primary driver of capital in the space throughout the previous week. In previous cryptocurrency bull markets, total market cap will increase while Bitcoin dominance decreases. The fact we are not seeing this among Bitcoin’s recent run up to $11K is not necessarily good for the bulls because it demonstrates a lack of strong buyers in the altcoin market. While this is somewhat neutral for the overall trend, we would prefer to see the inverse occurring in order to have further bullish conviction.