Bitcoin (BTC) gains while altcoins bleed
- Bitcoin crosses above the key $9,500 value area.
- Altcoin’s collapse against Bitcoin – lose value in both BTC and USD.
Bitcoin’s rise at the expense of altcoins
It’s a kind of bittersweet market that we have in cryptocurrencies today. At the time of writing this article, Bitcoin has gained over 3% on the day and has crossed above the psychological level of $9,500. This is an extremely bullish event and brings us closer to the all-important $10,000. As I have written in my previous articles, if Bitcoin can close above $9,452.50 (6/8th inner harmonic pivot) it has zero near term structural resistance between $9,452.50 and $10,000. I would expect, in the short term, for Bitcoin to retest the $9,452 inner harmonic pivot before moving to 10k. But this rise has been at the expense of the rest of the market and has resulted in a big bleed in altcoins – which could be signaling something dangerous around the corner.
I want to list the current performance of some of the most important altcoins, these levels are from at the time of writing this article (1658 CST).
ADABTC: -5.89%, ADAUSD: -3.40%
EOSBTC: -3.17%, EOSUSD: -0.73%
GNTBTC: -5.12% GNTUSD: -2.94%
ICXBTC: -7.25% , ICXUSD: -4.93%
NANOBTC: -9.81%, NANOUSD: -7.36%
OMGBTC: -5.33%, OMGUSD: -2.96
POLYBTC: -6.24%, POLYUSD: -4.57%
QTUMBTC: -4.92%, QTUMUSD: -2.15%
XLMBTC: -5.0%, XLMUSD: -2.55%
ZECBTC: -3.82%, ZECUSD: -1.46%
ZRXBTC: -5.53%, ZRXUSD: -3.23%
It’s very easy to think about the cryptocurrency market is in a bull market. Technically, with Bitcoin accounting for nearly 60% of the market (currently 57% and rising), the market is in a bull market. However – the rest of the instruments that make up the market cap are severely lagging Bitcoin and Litecoin – even Ethereum is lagging. In addition to that, we have multiple cryptocurrencies that are creating new all-time lows against Bitcoin. Some of those cryptocurrencies making new all-time lows are: Polymath (POLY), 0x (ZRX), Stellar Lumens (XLM), Steem (STEEM), OmiseGo (OMG), NANO (NANO), and ICON (ICX). So what does this mean? I think it could spell some ugly downside pressure here very soon.
Consider that Bitcoin has a number of Gann related events moving against it at the present. From the December 15th, 2018 low to the current date (June 20th, 2019), Bitcoin has been in an uptrend for 187 days. This is within the 180-day Gann Cycle of the Inner Year. The 180-day cycle is a powerful reversal cycle and can trigger fast and violent price changes. Bitcoin is also up against a key time pivot – the 7/8th time-harmonic on June 23rd, 2019. These type of time pivots act as a source of resistance in time to the trend in force. And on the weekly chart, Bitcoin has some significant bearish events up ahead. The top of the cloud on the weekly Ichimoku chart is just a shade below 10k. Also occurring on the weekly chart is some significant bearish divergence between the RSI and the Composite Index. A great many of these levels need to watch as sources of resistance – but the trend here is strong and a move to 10k with a breach above it would be an extremely powerful bull signal, and I wouldn’t want to be on the short side of this market when that happens.