Bitcoin price surpassed the 7K level overnight reaching a high of $7091 on Binance. BTC showing signs of strength in the face of another round of ETF denials, although the price seems to not have been affected from that decision and its likely that the market had priced in a denial prior to its occurrence.

Although BTC is showing signs of short term strength, up about 10% on the week, this rally may be cut short due to a few important factors. According to Coin market cap, The total volume today for BTC is 4.3 Billion, over a total market volume of 13.04 Billion. While we have seen a short term surge in BTC price, the volume has only ticked up marginally, making us believe this run may be short lived. In comparison, the previous short term BTC bull run in July showed signs of great strength from a volume perspective, peaking at over 20 Billion / day. This past weeks surge was likely a combination of two factors: a new ATH in short interest around the 6,400 level causing a short squeeze as BTC turned bullish, and last weeks creation of 100 M new tethers. Nearly without fail whenever there is a new tether print, BTC price tends to increase. Unfortunately, this is likely due to manipulation from tether which is able to prop up the price of BTC in the short term. This manipulation is not sustainable long term, and with every ‘tether pump’ we have seen in the past, there has been a subsequent dump.

This is not to say the bullish rally is over, and if BTC can maintain these gains, a move into the $7400 area is highly likely. Just remember, we’re not out of the woods yet and BTC is still technically in a down trend. A true bullish confirmation will arrive if BTC is able to surpass the 200 Day EMA with good volume and close above that level.

ALTS

We are seeing new signs of life from alts across the board on Binance. Two weeks ago we posted an article with a slew of different altcoin charts and nearly all of them were showing a full retrace in terms of BTC. If you were lucky enough to catch those bottoms, almost all coins on Binance have made large moves upwards, many posting gains in the double digits day over day.

WTC:

Up just under 100% in BTC since august 10th. Bottoming out around 3030 Sats and today its at 5931 Satoshi’s. Keep a close eye on WTC as their updated white paper will publish in the coming weeks.

NEO:

NEO has posted consistent gains over the last couple of weeks, bottoming out around 2330 satoshi’s and today it is at 3000 sats, a gain of close to 30%.

DASH:

Another notable mover, dash, took an enormous hit this year and it seems to have bottomed out around 20,849 Satoshi’s. This past week was very bullish for dash investors, with the price surging over 25% to 25,000 Sats.

ICON:

“The Korean ETH”, ICX. ICX has turned been posting consistent gains over the past week, bottoming out at 767 Satoshi’s and today it is at 1303 Satoshi’s. An over 85% move.

IOTA:

Lastly, the top-ten market cap coin IOTA has posted gains from August 14th of 6858 to a peak of 10523 satoshis, a whopping 65% uptick.

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With all of that being said, I don’t believe we are out of the woods yet. BTC short term bullishness has allowed for these heavily oversold ALTS to regain some traction, although these gains may be short lived. If you were lucky enough to participate in any of these pumps, it would behoove you to lock in some profits and set lower orders for a likely retrace.

On a side note, look out for BNB in the coming weeks. The next coin burn will be in mid October and nearly all of the coin burns have resulted in an increase in volume and a period of accumulation which results in a short term price increase. We have already witnessed the BNB volume triple in the past week, which shows us clear signs of accumulation in anticipation for the coin burn. Keep an eye on BNB in September but don’t chase any pumps as Binance tends to take off very quickly and then retrace.

Full Disclosure: This is not financial advice and We are Long BTC and BNB ATM.

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