BTC Holds Strong at $47k; Major Buy-Pressure Needed to Continue Through Powerful Resistance
All Aboard! Next Stop $50k?
As we’ve seen over the past month, BTC has been leading the charge in regaining the momentum of the recent bull market. Since August 6th, BTC has broken out above $42,000, indicating that buyers continue to defend support levels. The weekly TA charts have been showing signals that resemble the rally's start that we saw in November 2020. However, a sturdy wall of resistance at $47,000 will be the next major hurdle for BTC to break through and could lead to some sideways price movement in the coming week.
Alt Season 2.0... or No?
With BTC pumping and stabilizing at $47,000, many HODLers and Crypto Twitter enthusiasts are having flashbacks of the alt season we saw in 2020 and early 2021. Despite BTC pumping, BTC Dominance (One of the strongest indicators of where liquidity is flowing) has been steadily declining over the past month, reaching a level of 44.27% at the time of the article being written. And as we’ve seen in the past, when BTC Dominance declines, altcoins take the center stage.
Over the course of the past week, ADA, XRP, and SOL are just a few of the top altcoins that have been seeing insane upward price movement, giving traders hope that we will soon be breaking all-time highs and returning to the glorious days of price discovery.
Jack Dorsey: ETH Alone Can’t Defeat Big Tech
Twitter founder and CEO Jack Dorsey made bold claims this past week disputing the future potential of Ethereum and reinforcing his position of Bitcoin maximalism. Dorsey chimed into a discussion over social media about the integration of NFTs into Twitter, responding to a tweet about the future of ETH with “Disrupting ‘Big Tech’ is exactly what’s needed and what I want. No one technology alone will do that though,”.
Dorsey’s comments follow a string of past claims where he’s doubled down on his position, criticizing ETH’s issues of increasing centralization and potential security flaws.
It seems that Dorsey’s biggest reason for disregarding ETH is his affinity for the reigning champion that is BTC.
“Focus on one thing isn’t hate of the others. I’ve made my concerns known about others in comparison to Bitcoin. Key ones are founding principles, security, and centralization”.
Only time will tell if the tech juggernaut will someday adjust his opinion on ETH and the expanded role it's been playing in the world of Defi & crypto.
Cardano the Heavyweight
ADA HODLers and traders rejoice today as the proof-of-stake blockchain network clawed its way to the top of the charts, now sitting below Ethereum as the 3rd most valuable cryptocurrency in terms of market cap. ADA pushed Tether (USDT) and Binance Token (BNC) to the side to take its spot at number 3, with a collective value worth 68 billion US dollars.
The jump in value can likely be attributed to the “Alonzo” upgrade, which was announced to be released in early September. This upgrade will give ADA smart contract functionality: A move that will allow ADA to better incorporate Defi applications and automate tokenomics, lending & trading amongst its users. ADA is now slated against the titan that is Ethereum, as both environments allow smart contract apps to be built on their platforms.
ADA still has a long way to go, and Ethereum isn’t its only competitor; Polkadot, Solana, & Cosmos are just a few examples of other development protocols that actively compete for market presence and their place in the future of crypto.