• Bitcoin has recovered above $9,300, but the upside momentum is still t gain traction.
  • Bitcoin's market share has been retreating as some altcoins skyrocketed in January.

Bitcoin, the first and the most popular digital asset, regained some earlier losses to trade above $9,300 during early European hours. However, despite the recovery, the bulish momentum remains weak as we will need to see a strong move above $9,600 for the upside to gain traction.

Bitcoin dominance falling

Notably, Bitcoin has been losing its market share recently as altcoins demonstrated stronger growth in recent days. As a result, BTC's dominance dropped to 64.5%, which is the lowest level since July 2019. Many industry players are now talking about new altcoin season and the recent XRP's 11% surge has increased the speculations. 

Notably, the recent polls conducted in crypto twitter, revealed that about 50% of cryptocurrency traders hold mainly altcoins instead of Bitcoin. This phenomenon is explained by the fact that some coins have been much more profitable that Bitcoin this year. Thus, Ethereum Classic (ETC), Dash, ZCash (ZEC) and Bitcoin Gold (BTG) demonstrated tripple digit gains in January, while Bitcoin gained only 25%.

BTC/USD: technical picture

BTC/USD has cleared  $9,300 resistance  reinforced by 38.2% Fibo retracement for the downside move from July 2019 high to December 2019 low. If the breakthrough is sustained, the bullish momentum may gain traction and take the price towards the next strong resistance of $9,600. We will need to see a sharp move above this handle for the upside to gain traction towards $10,000.

On the downside, if the price slips back below $9,300, we may be in for a sideways trading in a range limited by $9,300-$8,800, the lower boundary is reinforced by SMA200 daily. Once it is out of the way, the downside is likely to gain traction with the next focus on $8,250 (23.6% Fibo retracement) and $8,000 (SMA50 daily).

BTC/USD daily chart


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: Fed-led rally could have legs towards $65,000

Bitcoin Weekly Forecast: Fed-led rally could have legs towards $65,000

Bitcoin has risen 7% so far this week, supported by the US Fed interest-rate cut and more than $300 million in ETFs inflows. The recent surge led BTC price to shatter several key technical resistance levels, a sign that the current two-week rally has likely some more way to go towards $65,000.

More Bitcoin News
Ethereum, BNB and POL holders on the watch as BingX faces loss of $26 million in hack

Ethereum, BNB and POL holders on the watch as BingX faces loss of $26 million in hack

Crypto exchange BingX said on Friday that it suffered a hack, an attack that led to “minimal” losses that researchers at PeckShield estimate at $26.68 million.  The attacker swapped the stolen altcoins for Ethereum, Binance Coin and Polygon tokens, according to on-chain data. 

More Cryptocurrencies News
Pepe price forecast: Eyes for 30% rally

Pepe price forecast: Eyes for 30% rally

Pepe extends the upward movement on Friday after breaking above the descending trendline and resistance barrier on Thursday. PEPE’s dormant wallets are in motion, and the long-to-short ratio is above one, further supporting this bullish move and hinting at a rally on the horizon.

More PEPE News
Shiba Inu is poised for a rally as price action and on-chain metrics signal bullish momentum

Shiba Inu is poised for a rally as price action and on-chain metrics signal bullish momentum

Shiba Inu remains strong on Friday after breaking above a symmetrical triangle pattern on Thursday. This breakout signals bullish momentum, further bolstered by a rise in daily new transactions that suggests a potential rally in the coming days.

More Shiba Inu News
Bitcoin: On the road to $60,000

Bitcoin: On the road to $60,000

Bitcoin price retested and bounced off from the daily support level of $56,000 this week. US spot Bitcoin ETFs posted $140.7 million in inflows until Thursday and on-chain data supports a bullish outlook.

Read full analysis
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

BTC

ETH

XRP