Bitcoin Price up 20%, Dominance Now at 45.5%
It’s been a good week for Bitcoin (BTC). The price has been steadily trending upwards and is now comfortably above the $7500 mark. 3 days back, we highlighted 5 technical indicators pointing towards a bull run in price. These, coupled with positive market sentiment bolstered by big cryptocurrency names such as Barry Silbert and Mark Lasry, have provided the necessary boost. Over the past 7 days alone, Bitcoin’s price is up over 20% – from a low of $6,256.51 recorded on July 15th (coinmarketcap.com data), it now trading at over $7,655 (as of July 23th, 6:46 UTC).
The past week has also helped Bitcoin regain ground on its market dominance in the cryptocurrency market. Bitcoin’s market dominance has risen from 42.8% (on July 16) to 45.53% now. So, what’s driving this renewed positive momentum for Bitcoin?
Bullish Crossover Boosting BTC Price
On July 20th, we highlighted 5 key technical indicators that indicate a bullish trend for Bitcoin. These indicate a strong bullish upward swing, an inverse head and shoulder pattern forming, good market momentum and a crossover in the making. Validating our analysis, on July 21st, the 14-DMA crossed the 50-DMA from below, forming a bullish crossover (see chart above). Bitcoin (BTC) has only been trending higher since then, making higher highs and lower lows each day.
Market Sentiment Riding the Bitcoin Bulls
July 20th also saw a positive report from the CME (Chicago Mercantile Exchange). According to the report, Bitcoin futures’ daily average volume has grown by 93% in the second quarter over Q1. The report also revealed that the number of open contracts on Bitcoin futures have increased by 58% during the period. Considering that a majority of investors in Bitcoin futures are institutional, these figures indicates greater acceptance and a positive outlook towards Bitcoin from the institutional class of investors.
BitMEX CEO Arthur Hayes has suggested that the current Bitcoin bull trend has the potential to skyrocket to $50,000 in 2018.