While the resistance in the lower-$24,000 region has proven to be a major hurdle for the crypto, each decline sparked by rejections at this level has proven to be short-lived and followed by serious upside.
This pattern of setting higher lows does indicate that bulls are still in full control of the crypto’s price action.
It is important to note that BTC’s strength has come as the entire altcoin market flashes signs of weakness. This could indicate that where it trends in the mid-term will depend largely on whether there will be any capital rotation event from BTC to smaller altcoins.
There’s a strong possibility that BTC dominance will stretch further before this occurs.
He notes that it may first need to clear its range lows and consolidate before making a sustained push higher.
This would mean that a decline towards the lower $23,000 region is imminent.
Bitcoin Shows Signs of Strength as Altcoins Plunge
Altcoins have been tanking throughout the past days, which comes as investors go risk-off following the dire SEC news that has sent XRP’s price tanking into oblivion.
Meanwhile, Bitcoin is still strong, trading down only marginally at its current price of $23,500. BTC’s strength in the face of altcoin weakness does point to a trend of its growing dominance over the aggregated market.
If this trend persists, BTC’s uptrend may continue contributing to altcoins’ weakness and potentially spark capitulation.
Analyst: BTC Likely to Clear Range Lows Before Uptrend Begins
This could mean that it will tap $23,000 and consolidate before it makes its next push higher.
“BTC: Thinking we retest some lower demand from here and sweep some lows. Let it range a little, reset premium and funding to have enough power for the next leg up.”
Image Courtesy of George. Source: BTCUSD on TradingView.
Bitcoin will likely remain in an uptrend until investors cycle money out of it and into altcoins, which could take some time.
Featured image from Unsplash. Charts from TradingView.