Cryptocurrency markets have remained in consolidation over the weekend with little movement from the high cap coins. Total market capitalization has increased slightly to $274 billion, but in general, things have remained in consolidation.
Bitcoin prices dipped to a weekend low of $9,150 (Bitstamp), but things had recovered slightly during Monday’s first hours of trading. At the time of writing, prices were nudging $9,240, but the overall outlook for BTC was still range-bound.
Bitcoin Price Massive Move Ahead
Digital asset manager, Charles Edwards, observed the confirmation of a buy signal on the Bitcoin hash ribbon as the daily close topped $9,300.
“#Bitcoin Hash Ribbons “Buy” signal just confirmed. The post-Halving signal is particularly special. It will probably be a very long time until the next occurs… and so the great bull run begins.”
A hash ribbon is a combination of moving averages of Bitcoin’s hash rate, which can be historically used to identify market bottoms, miner capitulation, which may result in good opportunities to buy BTC. Bitcoin hash rate is currently near its all-time high, which is also a solid indicator of network health.
Fellow analyst Josh Rager pointed out that historical volatility for BTC is very low at the moment, which usually results in a big upcoming move. A tightening of the Bollinger bands, as reported by CryptoPotato recently, is also an indicator of a big breakout.
“$BTC volatility this low has historically led to major price action between 30% to 60% movement in the following weeks,”
From current levels, a 30% move to the upside is just over $12,000, whereas a downwards move by the same amount is close to $6,500. Rager added that $7,200 is a strong area of support if things were to turn south.
End To The 2020 Altseason?
Bitcoin has lost ground recently in terms of dominance, which has slipped low of 62.2%. Altcoins, especially DeFi based tokens, have been on fire lately, which has revived calls for a new so-called altcoin season.
DeFi markets themselves have tapped new all-time highs each day for the past week or so. Currently, the total value locked is at $2.3 billion, according to Defipulse.com.
A massive move higher by BTC could prematurely end any alt-season as capital flows out of alts and back into their big brother, as history shows.