Bitcoin Head Fake? Cryptocurrency Market on the Mend

Bitcoin Head Fake? Cryptocurrency Market on the Mend

After a major runup this year that saw Bitcoin achieve market returns of 40%, a pullback was inevitable. The altcoin market pump was real, as Bitcoin's dominance fell from 67%-62% while the cryptocurrency market cap pumped over $300 billion. The recent pullback was anticipated and healthy, but what comes next? Was this a head fake or is this a kickoff to a bearish trend?

First, let's do a recap of the events of the end of last week. Bitcoin is 3-months away from the Bitcoin halving, which the media and Bitcoin traders have been fixated on. We are close enough historically to this event that a bullish rally could lead to a golden cross pattern that could propel the asset to a new all time high. The market recovery was stifled after the asset tested a major resistance at $10,600 on it's way to $11,000. We saw a 5% dip today, and the chart looks good in the short-term for the King of Cryptocurrency. In short, volatility is high and macro events including the global stock market slide and the rewards halving favor the cryptocurrency market currently.

What does the recent dip signify? After recovering on after a "Bloody Sunday", Bitcoin dipped again on Tuesday. After the weekend bloodbath, we ended up with a $20 billion cryptocurrency marketcap paper loss and a further reduction in Bitcoin's market dominance to 62.5%. We would expect an all time high market dominance of Bitcoin this close to the rewards halving, and a reduction in overall altcoin ownership.

Binance and Fidelity have experienced glitches that have reduced trading volumes. Whales have also made significant movement that spurred the dip, and may have deepened it. A whale who traded on Bitfinex made $6 million in short order on Monday. A huge vulnerability Bitcoin and the cryptocurrency market faces is low trading volumes that allow whales to move markets.

It is key to understand that the Bitcoin rewards halving, which is set to occur on May 20th, 2020 is a historical catalyst that will materialize soon. Miners are likely hoarding coins to sell when the demand for Bitcoin spikes after the media and investors buy the story. The macro and technical indicators are in place now for a gain on investment in short order. As an investor, today is a good day to buy after the 5% dip to $9,600/ BTC. Major altcoins including BAT, Augur, ETH and ETC have been slammed as the cryptocurrency market has contracted and are worth purchasing at these prices. Historically, Bitcoin has spiked and altcoins have dipped during the Bitcoin halving event, so now is the time to pick up some Bitcoin before the halving us picked up by the media and traders. Good luck, all!

Sources:

Originally published in my Publish0x account I own at:

https://www.publish0x.com/introducing-myself-on-publish0x-wstanley224/bitcoin-head-fake-cryptocurrency-market-on-the-mend-xngwro

Also published in my Steemit and Weku accounts I own.

Picture from Pixabay.

https://www.newsbtc.com/2020/02/19/bitcoin-halving-overhyped-previous-cycle-led-to-another-6-month-crypto-winter/

https://cryptonews.com/news/whale-rakes-in-usd-9-million-as-bitcoin-market-slides-5807.htm
https://coinmarketcap.com/

https://www-ccn-com.cdn.ampproject.org/v/s/www.ccn.com/bitcoin-tempts-all-time-high-after-historic-golden-cross/?amp_js_v=a2&_gsa=1&usqp=mq331AQCKAE%3D#aoh=15821528486396&_ct=1582152893660&referrer=https%3A%2F%2Fwww.google.com&_tf=From%20%251%24s&ampshare=https%3A%2F%2Fwww.ccn.com%2Fbitcoin-tempts-all-time-high-after-historic-golden-cross%2F