Bitcoin rallied by 11.32% on Monday. Reversing a 1.99% fall from Sunday, Bitcoin ended the day at $7.770.7.
Monday’s rally delivered a 2nd double-digit gain in just 3-days, with Bitcoin seeing green in 5 of the last 7-days.
On the day, Bitcoin had a relatively range-bound start to the day before making a move in the late morning.
On the rise from a start of a day intraday low $6,880, Bitcoin rallied to a late intraday high $8,021.8.
Whilst steering clear of the major support levels, sub-$7,000 support delivered once more on the day. Bitcoin broke through the first major resistance level at $7.334.93 and second major resistance level at $7,686.47 to strike $8,000 for the first time this year.
A late pullback saw Bitcoin ease back to $7,600 levels, but the damage to the bears had already been done.
Of greater significance on the day was Bitcoin’s breakout from the 62% FIB of $7,408. The move marked the beginning of a bullish trend formation as the bulls look to reverse a bearish trend formed back at May of last year’s swing hi $9,999.
Across the top 10 cryptos, while it was a sea of green across the majors, some certainly performed better than others.
Leading the majors on the day was Binance Coin, which found buying interest after last week’s 12.7% slide. Binance Coin gained 12.07% on the day.
Other notables were Bitcoin Cash ABC, which rallied by 7.6% and Ethereum, Binance Coin’s nemesis, which gained 4.4% on the day.
Trailing the majors was Stellar’s Lumen, which rose by just 0.8%.
In spite of Stellar Lumen’s lackluster performance, it remains within the top 10, for now at least.
The broad-based crypto rally on Saturday and Monday led the total crypto market cap through to $236.5bn, with 24-hour trading volumes sitting at $91bn levels.
Unsurprisingly, Bitcoin’s dominance has jumped to 59.5% following its recent run of form. The historical downward trend in the dominance figures in bullish environments appears to be broken for now. This could change should the likes of Ripple’s XRP and Stellar’s Lumen begin to catch up with the pack.
On the news front, perhaps China’s retaliation in the extended trade war between the U.S and China contributed to a visit to $8,000 levels.
The combined effect of a sell-off in the more matured markets and news of $1bn in capital raised by Bitfinex from institutional clients were certainly positives.
Institutional money is the next key step in Bitcoin and the cryptomarket’s evolution. The timing of the fundraising couldn’t have been better. The level of buying interests suggests there would be a sizeable inflow should the SEC approve the pending Bitcoin ETF reviews. Increased interest would also incentivize the rollout of other ETFs and investment vehicles targeting institutional clients.
At the time of writing, Bitcoin was up by 2.31% to $7,949.9. A relatively bullish start to the day saw Bitcoin rise from a morning low $7,731.3 to a morning high $7,970.9.
Moves through the early hours saw Bitcoin leave the major support and resistance levels untested.
Elsewhere, Ripple’s XRP joined to crypto party after trailing through much of the year. At the time of writing, Ripple’s XRP was up a whopping $20.86% to hit $0.39 levels.
The early moves by Ripple’s XRP supported other cryptomarket laggards. Stellar’s Lumen was a distance second with a 14.2% gain at the time of writing.
As we saw with Binance Coin on Monday, investors have been on the hunt for oversold cryptos and there was no better place to look than both, Stellar’s Lumen and Ripple’s XRP.
For the day ahead
It may all rest on the shoulders of Bitcoin to deliver an extended rally through today and beyond. A move back through to $8,000 levels would certainly support a rapid rise to $9,000 levels.
A few curveballs remain for Bitcoin and the broader market, however. The first is the pending decision by the SEC on the 9 Bitcoin ETFs. The other is a rollout of rules and regulations by the G20 this summer.
Favorable outcomes could see Bitcoin return to the dizzy heights of late 2017.
Many an investor missed out last time around. The very fact that investors don’t want to miss out at a 2nd time of asking could ultimately see Bitcoin break into unchartered territory.
There’s a long way to go, however, and we have been here before….