Bitcoin's (BTC) price clings to gains on Monday after rising 10% last week and closing above $64,000. BTC price rallied on Friday, driven by Federal Reserve (Fed) Chairman Jerome Powell’s confirmation that an interest-rate cut in the US is coming in September. This positive market sentiment led US spot Bitcoin ETFs to register net inflows of more than $500 million last week, while on-chain data such as the decreasing Miners Position Index and positive funding rates suggest a bullish outlook.
Bitcoin Spot ETF Net Inflow chart
Bitcoin Miners Position Index chart
Bitcoin Funding rates chart
Bitcoin price broke above its resistance level, the 200-day Exponential Moving Average (EMA) at $62,280 and its 61.8% Fibonacci retracement level (drawn from the high on July 29 to the low on August 5) at $62,042 on Friday. At the time of writing on Monday, it is slightly down 0.3% at $64,021.
If the 200-day EMA at $62,280 holds as support and BTC closes above the $65,596 level, it could rally 7% to restest its July 29 high of $70,079.
This bounce is supported by indicators like the Relative Strength Index (RSI) and Awesome Oscillator (AO) on the daily chart, which sit comfortably above their respective mean levels of 50 and zero. These momentum indicators strongly indicate bullish dominance.
BTC/USDT daily chart
However, if Bitcoin's price closes below the August 21 low of $58,783, a 5% decline towards daily support at $56,022 would be on the cards, as it would set a lower low on the daily chart. Thus invalidating the bullish thesis.
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.