BTC continues to perform strongly, with more and more analysts agreeing the bottom is in.
This week once again saw a strong performance from bitcoin, which has now pushed higher to meet the $5,600 resistance level. This is a key area because bitcoin paused here – albeit briefly – on its slide from $6,000 down to $3,100. This was the ‘last stand’ for the bulls on the way down back in November, and it could be the last stand for the bears now.
Most analysts now agree that the bottom is in for BTC, based on a range of different factors. Bitcoin is now up 75% from its December low. For the bulls, the next major area of resistance to overcome is that $6,000 line where BTC spent so much time consolidating last year. Once that has been broken, there is the likelihood of much more interest coming in from the sidelines.
However, this is bitcoin and so it is always worth keeping an open mind. The bull markets can run longer and higher than most traders ever expected, and so can the bear markets. At least a couple of notable traders believe that we are still in for another leg down. Tone Vays has warned that this is a bull trap, and is targeting sub-$2,000. Alessio Rastani, meanwhile, notes that markets ‘are generous with second and third chances’ to buy the lows, though stingy with fourth and fifth chances. He is expecting a retest of the 200 WMA and potentially the $3,000 level. Though this may seem impossible at this point, the 2015 bear market and post-capitulation consolidation provided just such opportunities, with returns to the low of below $200 multiple times – if not the final capitulation low of $155.
The alts have been a mixed picture, with most posting USD gains but dropping against BTC, as traders sell in anticipation of greater rises for bitcoin. BAT enjoyed a very strong week before Easter on news of a new release of the Brave browser with key new functionality, and at one point had almost tripled in BTC terms from its bear market low to close to an all-time high in bitcoin prices (and 400% in fiat), but has now pulled back. Alts in general have done very well over the past weeks, as confidence returns to bitcoin and traders snap up oversold coins. While bitcoin has posted 75% gains, many alts have seen two or three times that. Litecoin, for example, bottomed at around $23, and is now trading at close to $80. What BTC does next will set the context for whether its time to call it Alts Season.
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