This week, BTC has regained support above the $10k mark, which is historically a significant psychological barrier for the price of Bitcoin. However, lately crosses of the $10k mark have been trivial and temporary in either direction. This leaves many to wonder what is next for the volatile cryptocurrency. The chart below is on a 1-day setting, and paints an encouraging picture.
As you can see, Bitcoin bounced firmly off of the low-$9k support that has acted as a significant level as of late. It ended the day above the 20-day moving average, which is historically a very encouraging sign for the short to mid-term price. In order to be seen as a breakout, we would need BTC to cross about $11.5k and close convincingly above that level, which is currently resistance. It’s possible that if we continue on this path, Bitcoin could be forming a very aggressive bull flag on the daily time frame. This leads us to believe that Bitcoin could be set for another wave of price increases.
What does it mean for altcoins?
At the moment many altcoins are sitting at all-time lows. Historically, altcoins suffer both when Bitcoin has sharp inclines as well as declines. Altcoins tend to thrive when Bitcoin starts to move more sideways, so it’s possible that we don’t see any altcoins gain back significant ground again until Bitcoin completes another leg up on its journey. It’s hard to see altcoins getting beaten down much more, as the downtrend has to be broken at some point and many people have already sold their altcoins. If you’re looking for an entry on some of these cryptos, you might start looking during the next Bitcoin pump as it’s possible we get one last sharp sell-off before a reversal.
The bear’s case
If Bitcoin does fail to close above the $11.5k level in the next couple of weeks, it’s very possible that we see sentiment shift towards the bears’ side of things. If we are rejected off of the top of this channel and get a break of the $9k support shortly thereafter, we could be in for a couple more months of sideways/slight decline.