Crypto Markets Flip Green as Litecoin Leads Power Surge
Crypto markets were back on the offensive Monday, with Litecoin (LTC) leading a broad recovery that extended to virtually every major asset in the top 30. The strong bounce challenges the assertion that a bullish-to-bearish trend reversal is underway.
Crypto Markets Surge
With the exception of Maker (MKR) and the dollar-backed USD Coin (USC), all major cryptocurrencies in the top 30 were trading higher Monday afternoon.
Bitcoin, the largest and most influential cryptocurrency, gained 2.9% to $7,957, according to CoinMarketCap. Bitcoin briefly traded above $8,000 for the third time since Friday.
Despite the rally, bitcoin’s market dominance rate continued to erode ever so slightly, a sign that altcoins and tokens were rising again. Bitcoin’s dominance rate now sits at 55.6%, roughly five percentage points below last month’s peak.
Litecoin was quite easily the top-performing major on Monday, surging 10.5% to $126.85. With the gain, LTC is back to trading at yearly highs. The rally also confirmed Hacked’s forecast from five days ago, when analyst Ken Chigbo noted the strong confluence of support at $100. Under those conditions, Litecoin was seen staging a big recovery north of $121.
Litecoin has once again overtaken bitcoin cash (BCH) as the world’s fourth largest cryptocurrency with a value of around $7.9 billion.
Bitcoin cash rallied 3.3% to $392.534.
Ethereum (ETH) advanced 4.6% to reach $244.87. XRP approached the 40-cent mark, climbing 3.1% to $0.3971.
Major Pullback Not Guaranteed
Bitcoin’s parabolic surge since February has carried with it the expectation that prices are inevitably due for a big reversal in the near future. Hacked presented that case in an April article describing the onset of a new four-year cycle – one that is expected to peak sometime after 2021.
But the long-awaited pullback of 30% or more might not happen anytime soon. Crypto investor Josh Rager recently expressed his surprise at bitcoin’s resiliency. “Even I expected further downside,” he said in a Monday morning tweet.
Nice 6% pump by $BTC
Sentiment was a little too bearish after that weekly close
Even I expected further downside
Range remains the same and would like to see a daily close above $8200 pic.twitter.com/z4HONOT4HJ
— Josh Rager 📈 (@Josh_Rager) June 10, 2019
So long as bitcoin holds the 30-day exponential moving average, the outlook remains positive. The 30-day EMA has proven to be a reliable support time and time again. It was breached ever so slightly during the most recent pullback before traders quickly bought the dip. Read more: Bitcoin Claws Back Toward $8,000, Avoiding Bearish Reversal.
Bitcoin’s unwillingness to stray far away from $8,000 means that another price discovery phase may be on the horizon. Fundstrat co-founder Tom Lee recently reminded investors that bitcoin’s ten best days are responsible for virtually all of its price gains in any given year.
“Reminder that BTC generally generates all of its performance within 10D of any year. –ex the top 10 days, BTC is down 25% annually since 2013,” Lee tweeted back in early April.
On Monday, Lee speculated whether today was another “ten best days for bitcoin” given how well the cryptocurrency has held up to scrutiny.
Especially given how so many have pointed out ‘bearish’ technical formations over the past few days…
— Thomas Lee (@fundstrat) June 10, 2019
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Charts via CoinMarketCap.