That went quickly! Bitcoin has completely made up for the fall of 28 August. On Monday, September 2, the rate has risen by almost eight percent. And where bitcoin is rising, the altcoin market is lagging behind. Bitcoin’s dominance is therefore at its highest point in two years.
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Triangle in a triangle in a triangle
Yes, there we go again! The price of bitcoin is still moving in a triangle, and it will continue for a while.
We have drawn this large triangle with green lines on the graph below. Does the course break out at the top or bottom? Then we can expect a large price movement.
But even more striking; within the triangle you can also see two other triangles. You can see this on the graph above on the orange lines. The last time the bitcoin price broke out of the small triangle, it looked for the top of the green triangle.
Does that happen again now? Then bitcoin can quickly rise to 10,000 euros, the top of the green triangle. The price will again find resistance there.
Does Bakkt give bitcoin a helping hand?
In our price analysis of Friday, August 30, we wrote about the launch of the bitcoin futures platform Bakkt, September 23 is the big day. What does the price do a month before the launch of Bakkt? To investigate this, we are comparing the current rate with that at the end of 2017.
In mid-December 2017, CME Group launched bitcoin futures for the first time. The hype was great, the rate rose to unprecedented heights. Does Bakkt bring the same hype and does the bitcoin course follow the same path? Then you get the graph below.
The first vertical line is one month before the launch of Bakkt. The second red line is the launch. The green and red candles represent the bitcoin rate of today. The blue price line shows the price development of bitcoin, about a month before the launch of the bitcoin futures of CME Group in 2017:
Bitcoin has been following almost exactly the same path since the end of August this year as at the end of November, beginning of December 2017. If bitcoin continues to do so, then we can expect a rate of 13,500 euros during the launch of Bakkt.
Bitcoin dominance at the highest point for two years
Bitcoin’s dominance is now at its highest point in two years. Almost 73 percent of the cryptomarket now consists of bitcoin. In the week of 10 July 2017, the dominance had been so high for the last time.
You can see that on the graph below:
Why is the bitcoin dominance so high right now? That’s guessing. It is possible that the launch of Bakkt is creating more interest in bitcoin, certainly at institutional parties. But developments in the global economy can also lend a hand. Earlier we wrote about the influence of trade negotiations between China and America on the bitcoin rate.
Bitcoin remains the best known cryptocurrency, and can be seen as a safe haven in times of uncertainty. When the economy goes bad, people can see a refuge in bitcoin to preserve value. This also seems to be the case in Venezuela, where the population suffers from hyperinflation. Residents try to keep their hard-earned money with bitcoin.
The graph below shows that litecoin (LTC), bitcoin cash (BCH), ethereum (ETH) and ripple (XRP) make roughly the same price movement as bitcoin until mid-March 2019. But from that moment on you see that altcoins have difficulty hooking up with bitcoin.
Litecoin initially rises together with bitcoin, in the run-up to the litecoin block halving. But from mid-May bitcoin follows its own path. Bitcoin rose the fastest in that period: