It appears to be obvious that the boring days of Bitcoin trading are over. The cryptocurrency went on a spree over the past week, gaining more than 10% and breaking the coveted $10,000 mark for the first time since June.
Bitcoin Price Does it Again: Over $10,000
The past couple of weeks were fairly boring when it came to Bitcoin’s price action. After all, the cryptocurrency remained trapped in a very tight range for most of July.
This saw the Bollinger Bands squeezing very tightly, which is usually regarded as an indicator for an impending swing in either direction. But while most of the cryptocurrency was bearish because of the market’s indecisiveness and the low trading volumes, BTC turned in favor of the bulls.
In the past six days, Bitcoin gained upwards of 10% and it all culminated today as the leading cryptocurrency finally broke the coveted $10,000 mark. It reached as high as $10,111 on Binance before retracing slightly to where it currently trades at around $9,995.
BTC/USD. Source: TradingView
As CryptoPotato reported yesterday, $10,000 is one of the important levels to keep in sight. Should BTC be successful in closing above it, the next target would be $10,500 which is the current yearly high and poses major resistance area that it would have to breach to continue a bullish run higher.
Bitcoin Dominance Recovers in a Beat
Another important thing to consider is Bitcoin’s share relative to the entire market cap. Just before this run-up, the index was at a yearly low.
However, in the short minutes where Bitcoin’s price took off, the dominance index also increased by almost 1%. This means that the primary cryptocurrency managed to reclaim some of the grounds it had lost to altcoins.
Speaking of altcoins, all of them took a beating in the past hour.
Cryptocurrency Market Overview. 1h. Source: Coin360.com
The above heat map is an hourly representation of the performance of altcoins against Bitcoin. The entire market is covered in red, which is commonly the case when Bitcoin’s price takes off.
This is the main reason for which it’s important to proceed with care. Sudden movements in the price of Bitcoin usually reflect instantly on altcoins. The currently ongoing altcoin season might come to an end if the primary cryptocurrency continues its surge.