Yesterday’s article was “Is BTC Determined To Try Higher?,” and that’s exactly what it has done. Bitcoin (BTC) hit a high of $5,645 and Ethereum (ETH) $177. In fact, most top 10 coins are higher on the day but BTC is most definitely leading the way. Bullish sentiment is the only real driver thus far. Last year’s line in the sand at $5,800 is getting closer and closer and there seems to be some consensus that a break over that level could see a similar reaction to that which we saw when we broke under $5,800 – fast and sharp.
As for yesterday, however, the early price action is as much as we will get from BTC. It eventually settled down to trade sideways between $5,550 and $5,600. The majority of the other major coins were either unchanged or slightly down on the day. Make no mistake, this is all about Bitcoin at least for now.
Nothing has changed in the big picture from yesterday’s chart although the first attempt at resistance at $5,663 was successfully repelled. What today’s chart does show is BTC’s divergence from ETH on this current run up (if you compare to other coins such as LTC, the divergence is even more profound.). ETH is drawn in red and green, BTC is superimposed in orange.
As stated above, this really is about BTC and the rest of the market is starting to lag. That’s not necessarily bad for BTC, it just highlights where the true interest is. However, if BTC starts to fail at these levels, I would imagine the rest of the market could catch a pretty severe early spring cold. For now, it still feels like this market wants to test the $5,800 level to see what is there.