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Bitcoin has been able to hold above $4,000 following its recent upwards swing that sent it up nearly 30% from its recently established 2018 lows. Despite being able to hold above $4,000, Bitcoin’s upwards momentum was not able to sustain into Friday, and its recent rally has stalled.
At the time of writing, Bitcoin is trading down nearly 2% at its current price of $4,040, down from yesterday’s highs of approximately $4,200. Bitcoin appears to have established some support in the $4,000 region, and $4,200 has been set as a resistance level.
Where is Bitcoin Going Next?
Bitcoin’s recent volatility has led investors and analysts alike to have mixed opinions regarding the future of the digital asset, with most prominent analysts offering investors a dose of skepticism, noting that the chances are incredibly low that Bitcoin has reversed out of the persisting bear market that has lasted throughout 2018.
In a recent tweet, DonAlt, a popular cryptocurrency analyst on Twitter, cautioned his followers against buying into the current rally, noting that we are still in a brutal bear market, and further volatility is likely to come.
“By the way, this is not the place to start buying. A full year bear market doesn’t just go away like this, it’ll take time. Even if BTC goes to 4270~ I’ll only be looking to short/close longs. We’re still in a bear market, BTC is just rightfully punishing late bears,” he said.
The Crypto Dog, another popular cryptocurrency analyst who has a large following on Twitter, laid out how he sees the markets unfolding over the coming days and weeks in a recent thread, noting that Bitcoin faces strong resistance in the $4,000-4500 range.
“As I mentioned in my last market watch thread, the $4000-4500 block stands as a very strong resistance, lending itself now as an opportune price to begin to hedge long positions… If bulls are able to push past $4500, $4800 is the last bump in resistance that stands in the way before $5400. At this time I am not anticipating a rally beyond ~$5500, nor can I guarantee more relief even past $4500, though we must not count any scenario out,” he explained.
Furthermore, The Crypto Dog also explained that if the bears come out swinging and push Bitcoin’s price back down, support exists in $3,400-3,700 region, with further support near $3,100.
Altcoins Drop, TRON Surges Over 15%
Bitcoin’s inability to sustain its upwards momentum has led the altcoin markets to drop, albeit slightly, with today’s best performing cryptocurrency being TRON.
At the time of writing, TRON is trading up 16.4% at its current price of $0.02 and is trading up significantly from its seven-day lows of $0.0126. TRON is one of the few major cryptocurrencies that is trading up over a 24-hour period, with most altcoins trading down marginally.
XRP is currently trading down 2.8% at its current price of $0.365 and is closely tracking Bitcoin’s price movements.
Ethereum is trading down slightly at the time of writing and is currently trading at just under $113.
As the markets trade generally sideways, it is presumable that they will closely follow Bitcoin’s next move.
Featured image from Shutterstock.
