Leading cryptocurrencyBitcoin (BTC) on Monday 5th August 2019 jumped above $11,868 making it the highest it has gone since July 12th. With the new price, observers consider that BTC'sprice gains may remain sustainable if they are backed by an uptick in the dominance rate.
For instance, VinnyLingham, co-founder & CEO of identity protection and management startup Civic, put out a series of tweets on April 10, explaining how alternative cryptocurrencies decoupling from the BTCrally would be a sign of substance in the bull run.With the dominance rate validating BTC’s 9.5 per cent price rise in the last 24 hours, further gains toward resistance at $12,030 look likely. Technical indicators are also signalling a continuation of the price rise.
The price action seems to have convinced the crypto market community that yuan’s drop below the major psychological level of 7 per USD fueled a rally in BTC’s price that is, wealthy Chinese investors, rotated money into BTC amid the yuan’s depreciation.
Some observers, including prominent analyst Alex Kruger, wondered earlier today whether BTC had front-run the People’s Bank of China’s (central bank) decision to allow the yuan to slide beyond 7 per USD.
If that narrative continues to strengthen, then BTC may become vulnerable to a bounce, in yuan, if any. However, as of now, the yuan is showing little sign of life, currently trading at 7.08 per USD.