This week we saw a sharp recovery in the overall market as bitcoin rose over $1 000 to the $8 000 per bitcoin mark. In particular ethereum and alts made a comeback with the former bouncing 40% from it's early April lows. As you can see from the market capitalisations below, bitcoin lost some ground to the alts. The question now is, will this trend continue?
(Click the images for a larger version)
Bitcoin vs The Dollar
We have an interesting bull flag forming in the btcusd chart. This typically results in a break to the upside but we'll probably need to see a strong close above the $9 000 handle before confirming this. The trend remains down for this year, however the longer term charts suggest some bigger moves towards the 2nd half of the year.
Some Potential Alternative Trades
Aragon is a little known crypto that I've been watching for a few months now. With a focus on decentralised organisations and governance I love the idea of a flat hierarchy in work environments where employees are the owners in a business (network). The price has moved into a very favourable retracement and I picked some up with Ethereum around the 0.0054 level. I'm looking for a 2x on the Ethereum trade and about 17x on the dollar trade.
This is a highly speculative trade and some risk management is important. I like the team from the interviews and podcasts I've seen and heard but can they deliver on their promise?