It has been a generally positive day for the crypto markets, with Bitcoin’s rebound from its dip below $6,600 yesterday allowing it to incur some notable momentum that has since led it to break back into the $7,000 region.
The intensity of this uptrend has been particularly visible amongst altcoins – many of which have climbed 5% or more.
In order for altcoins to see further upwards momentum, however, it may be imperative that Bitcoin closes its daily candle above $6,950, as a sustained retrace below this level in the coming hours could prove to be grave for the crypto market.
Bitcoin Pushes Towards Overhead Resistance as Bulls Awaken
Prior to today’s upswing, Bitcoin’s bulls and bears had long been at an impasse, leading the cryptocurrency to trade sideways within the upper-$6,000 region for an extended period of time.
This consolidation, however, ultimately resulted in bulls gaining the upper hand over bears, subsequently propelling the crypto up by nearly 5% to its current price of $7,020.
Although the break above $7,000 was undoubtedly a positive development for bulls, BTC isn’t out of the woods yet as it is still trading below its key resistance at roughly $7,380 – a level that bulls have not yet tested throughout the course of this current uptrend.
Josh Rager, a crypto analyst on Twitter, offered his analysis of Bticoin’s current price action in a recent post, pointing to this key resistance as an important level to close above in the hours and days ahead.
“BTC: $6600 is the support to watch & has held the 4 hr close since April 1st. $7383 is still the level to close above before high $7ks and if BTC can close this 4 hr above $7k, could see another move up to $7400. I’m neutral for now though, looks like more ranging,” he noted.
How BTC Closes Today Could Have a Big Impact on the Crypto Market
Another popular crypto analyst noted in a recent tweet that he believes Bitcoin closing its daily candle above $6,950 is critical in order for altcoins to see any further upwards momentum.
“Patiently waiting for a daily close above $6950 to start longing BTC & ALT/USD pairs all over again.”
Bitcoin is currently trading just a hair above this level, and whether or not bulls are able to flip $7,000 from resistance to support will be integral in determining the long-term sustainability of this movement.
Featured image from Unsplash.