Yesterday we talked about how bitcoin was getting ready for a big move and just like we said yesterday, we saw bitcoin break through the resistance at $32,000 and move up to the $36,000 level which was a new all-time high. A new all-time high means that every single bitcoin investment is seeing a profit right now.
Of course, we would see a correction before we get to $100,000. We are yet to see the parabolic run-up, we are still above the four-hour support, essentially we are still bullish on the time frame. It's possible we could be seeing parabolic support if the price continues to blast through to the $37-$38k levels then obviously we are not going to see the bearish divergence yet. Although there is a possibility of it playing out, it's kinds of early to tell.
Going to the bitcoin dominance aspect, it looks like the bitcoin would follow a similar pattern from previous performances on the bitcoin trade chart; it seems that there are not a lot of possibilities that the altcoins would pump more. They would possibly remain where they are. It looks similar, there is a big correction but a short and sharp one. We still need to watch though.
Also, factor in that retail trader data shows that 89.87% of traders are net-long with the ratio of traders long to short at 8.87 to 1. That of bitcoin shows that 75.72% of traders are net-long with the ratio of traders long to short at 3.12 to 1.
Taking a look at ethereum against bitcoin, it's clear that ethereum is looking healthy against bitcoin. We may be going to see some form of consolidation, maybe a bull flag or bull pennant. Going to ETH/USD we can see that ETH is pushing higher testing towards the local high of $12,000. If the chart forms a cup and handle pattern we could see ethereum surge up to $2,600. It's looking very interesting right now because of the bullish trend playing out. However note that if ethereum breaks above Monday’s $1,167 high, it will open the door for a potential re-test of the January 2018 high of $1,420.
Bitcoin has the strongest trend and has kept exploding year after year. It has gained by over 200000% in the last ten years. In my opinion, it makes sense to put your money in bitcoin. It is the smart investment to make right now.
