Bitcoin and Solana failed to hold after breaking above long-term resistance
Yesterday Bitcoin broke above the descending trend line that has been effective resistance since March.
At the same time Solana broke above its own descending resistance trend line that has been in affect for the same eight months. However, today both Bitcoin and Solana broke back below their prospective descending tops with Bitcoin losing 1.61% and Solana losing 5.40% on the day as of 5:52 PM EST.
One big bullish factor for Bitcoin has been the possibility of Microsoft adding Bitcoin to its balance sheet. According to a recent SEC filing, Microsoft shareholders are on track to vote on a proposal to assess whether the company should diversify its balance sheet by including Bitcoin during their Dec. 10 meeting. Although the company’s board has come out recommending against it this highlights the fact that more and more public companies could be following the strategies of MicroStrategy and hold some percent of their holdings in Bitcoin which would obviously be a bullish influence on price.
Out of the top 10 cryptocurrencies by market cap Solana by far had the strongest week. Even after today’s 6.45% decline on the day Solana still gained 8% on the week compared to Bitcoin’s 1.79% decline or Ethereum, XRP and Toncoin which all had losses of more than 5% on the week.
The Ethereum killer has lived up to its name yesterday hitting a high in the ETH/SOL spread of 0.0687. Solana also reached a two-month high against Bitcoin recently. Yesterday’s 24 DEX volume showed that Solana recorded twice the volume of Ethereum earning the number one spot yet again.
While it is true that that entire cryptocurrency market tends to follow Bitcoin, however over the last few weeks Solana is starting to show that it may be able to forge its own path with three days where it had gains and Bitcoin had losses. Although Bitcoin had daily gains for three days Solana had losses and Bitcoin dominance has reached a new high this year currently the BTC dominance is at a remarkable 59.27%. that represents a 52.14% advance since the lows hit around two years ago at roughly 39%.
