Bitcoin is holding strongly above the $9,500 support despite a seemingly weak start to the week. The day has been marked by declining figures. Notably, Bitcoin dominance and trading volume. This is unsurprising as the digital asset was eclipsed during the weekend by altcoins. With some of these assets, their upward trajectory is just beginning and is expected to continue pumping and outperforming Bitcoin for weeks. So where does this leave Bitcoin?
Well, the digital asset is currently lagging and clinging for growth. At or below $9,500, Bitcoin can easily spiral downwards to the recent $8,600 lows. A more decisive position for Bitcoin is $9,800. This resistance has been a major hurdle for bulls looking to reach $10K but its approach has promised a break above and rally to highs of $12K to $14K.
With Bitcoin steadily above $9.5K, proponents can expect a push in the next few days to the $9.8K resistance. From this, Bitcoin can form a more long term bearish or bullish trend depending on whether it breaks above or slumps back.
If Bitcoin fails to break above, it could easily dump below the $9,500 support as an investor’ exit. A number of investors have noticed the recent positive performances by top altcoins and will be looking to take positions. Two of the most notable ones are Ethereum and Cardano. There is also optimism around Tron and Ripple’s XRP.
Investor entry into these coins will see Bitcoin suffer in market dominance and generally lead to decreasing volume.
Indecisiveness in Market Sentiment
To get a glimpse of market sentiment, traders turn to the Fear & Greed Index. This indicator has expedited investors to decide the right time to buy or sell as the general smart money rule has always been, “buy when there is fear and sell when there is greed”. The Fear and Greed index is represented on a scale from 0 to 100 with 0 being extreme fear and 100 extreme greed. Today, the indicator is at a perfect 50 which is neutral.
Although the week has started with sideways trading and an undecided market, it is better than “bloody Mondays”. It is also unsurprising with recent trends showing higher price swings taking place towards the end of the week.