The past week brought some larger capital allocations to the digital commodity space. The total market capitalization rose above some of the key levels that I have noted in previous writings.
The market had been in a consolidation near recent lows, but that seemingly changed on in the morning on April 12th. Bitcoin was purchased in large amounts, and rose more than $1,000 in a few hours, which pushed the total market value above the 300bb mark. This in turn attracted other capital and momentum investors and traders. As of this writing the value of the entire digital currency space is 330 billion dollars.
Another key note which I have mentioned many times is the BTC weighting in the cryptocurrency space. This number fell from 44.5 to 41.5, which I have noted is one of the most important factors if a broad based rally is to resume. The all time low in market share for Bitcoin is 32%, and last weeks move from 44.5 to 41.5, which is nearly 7% is one of the largest on a weekly basis in the history of the digital commodity marketplace.
With Bitcoin total market share falling while the cryptocurrency market rose more than 25% this shows that capital is moving into this asset class and looking for the smaller market cap assets at a rapid pace.
Here are how some individual cryptocurrencies and other assets fared last week:
Bitcoin: + 19%
Lite Coin: + 21%
Cardano: + 64%
Doge: + 68%
PAC: + 45%
S&P 500: + 2.5%
NASDAQ: + 3.3%
WTI Crude Oil: +6.8%
Other notes on global markets, as seen from the numbers above. Capital was allocated across the board to many of the larger asset classes and this should be noted as well. It is a positive sign for the digital commodity world, as it shows this market is maturing and is attracting institutional capital and is moving with the proverbial tide.
The key support and resistance levels for the digital commodity market have changed since the last writing as markets have rallied significantly.
Major support levels are:
290-300 billion area and the 250-265 bb range.
Resistance ranges is 355-365 bb and 390-405 bb.
Investors and traders should also be aware that after large market moves such as last week, the next move does not have to be straight up or straight down. On the contrary, more mature markets tend to consolidate after major capital allocations or redemptions.