Bitcoin Rally or Bull Trap?

The past week has been a true test to us cryptocurrency users and traders alike. We have seen a couple of big shake-outs with the cryptosphere taking a HUGE loss in market cap dropping from its high over $116.5B in June (according to coinmarketcap.com) down to just under $61B in a span of roughly 3 weeks. The past two days we have seen a steady increase across the board with Bitcoin holding strong around $2200 at the time of writing. The market cap has SURGED back to 80B and even hit a high of 84.5B today before selling off slightly.

BTC has been testing its old support zone of 2200 which was its resistance zone about 12 hours ago. This may be a good sign that a rally is underway. There was a jump in alt-coin prices as people bought back into the market, quickly followed by a sell-off across most alt-coins after such sudden gains. BTC dominance went from around 49% when the market bottomed out down to around 42-43% when the alt-coin surge happened earlier. BTC dominance is sitting around 47% currently so this may be a sign of some strength returning to the market.

Be very cautious however since we have all seen this song and dance before! Classic setup for a bull-trap as people regain confidence. If we can maintain some steady growth here then BTC will have no problem continuing in an upward trend. Maybe we did actually hit the bottom and a reversal is underway, but the next few days will be critical to watch as it will set the trend for the next two weeks as investor confidence is slowly returning.

AND AS ALWAYS REMEMBER TO FOLLOW, UPVOTE, AND COMMENT DOWN BELOW!