Bitcoin (BTC) has been trading in a narrow range today and oscillating about the $4,000 level. The level to watch continues to be $3,900 since that was the price of Bitcoin when CME Futures traders likely took out their positions for the month.
It seems that the $3,900 level has high gravity, and Bitcoin’s price cannot rally too far beyond it and is inexorably being dragged down towards it, suggesting CME Bitcoin futures traders largely went short.
The stock market is continuing to see day over day gains, and that is not helping Bitcoin (BTC). If the stock market crashed like some experts expected then perhaps Bitcoin (BTC) would be in a strong rally right now, since stock traders may divert money into Bitcoin (BTC) as a safe haven during a stock crash. Instead of crashing the Dow Jones Industrial Average (DJIA) has rallied 2,100 points since Christmas Eve.
Usually, Bitcoin leads the market trend, and other cryptocurrencies tend to mimic its price movements, but today several cryptocurrencies are rallying strongly. Tron (TRX) is up eight percent and now has a market cap of $1.9 billion, surpassing Bitcoin SV (BSV) for the number nine spot. If the rally continues, Tron (TRX) could overtake Tether’s (USDT) market cap. So far, Tron (TRX) is up 115 percent this month and is perhaps the biggest success story of the past month.
EOS is up four percent and now has a market cap of $2.6 billion, still a far cry from its ICO of $5 billion. Cardano (ADA) has seen a rally of seven percent today and has rallied 85 percent during the past month. Dash (DASH), the number one masternode cryptocurrency, is up five percent today.
Ripple (XRP) has spiked two percent in only the past few hours and has narrowed the gap between its market cap and Ethereum’s, with less than $600 million of separation. With the Ethereum (ETH) rally stalling out, and potential contention between miners and developers when the Ethereum Constantinople hard fork arrives in the next week, it seems possible that Ripple (XRP) can possibly overtake Ethereum (ETH) for the number two spot.
The total cryptocurrency market cap is steady near $137 billion today, well above the $100 billion seen during the worst of the bear market in mid-December 2018. It is still uncertain if mid-December was the true bottom, and a consistent long term rally would be needed to declare that the bottom is in.