Although Bitcoin incurred some downwards pressure late last week after news surrounding the Tether-Bitfinex imbroglio surfaced, BTC now been able to tepidly advance higher, and has led the entire crypto markets to surge.
Despite finding stability in the lower-$5,000 region, analysts are now expressing somewhat cautiously bearish sentiments regarding the current state of BTC and expect altcoins to be the cryptos that incur further gains in the near future.
Bitcoin (BTC) Advances Above $5,300
At the time of writing, Bitcoin is trading up just under 2% at its current price of $5,330, up from 24-hour lows of $5,219.
Earlier this week, news broke surrounding the New York Attorney General’s public accusation of fraudulent activity being conducted by stable coin Tether (USDT) and related crypto exchange Bitfinex, which instantly send BTC’s price reeling downwards from highs of $5,650 to lows of $5,180.
Although the cryptocurrency’s recent price action certainly appears to be somewhat bullish, Mr. Anderson, a popular crypto analyst on Twitter, explained that in order for technical formations (like the recent golden cross) to be bullish, BTC’s price must actually respond bullishly.
“$BTC Daily: The 55 EMA will cross the 200 EMA. This is inevitable. These events are not simply BULLISH though. It is the reaction by Price when this occurs that determines its effect (Bullish/Bearish) and that effect usually is long-standing,” he explained in a recent tweet.
The 55 EMA will cross the 200 EMA. This is inevitable
These events are not simply BULLISH though
It is the reaction by Price when this occurs that determines its effect (Bullish/Bearish) and that effect usually is long-standing pic.twitter.com/8mPpYRECvU
— Mr. Anderson (@TrueCrypto28) April 30, 2019
Although BTC’s response to recently established bullish technical formations has been muted, it remains possible that the cryptocurrency is simply consolidating at the current time, and that a bullish surge is right around the corner.
Crypto Markets Surge Despite BTC’s Stability
Because Bitcoin has remained stable in the low-$5,000 region and it remains unclear as to which direction the crypto is heading next, many traders are turning to altcoins to make profits.
Today, multiple major cryptocurrencies have posted decent gains, with XRP climbing over 5%, Bitcoin Cash surging over 6%, and Litecoin jumping over 8%.
Lucid TA, another popular cryptocurrency analyst on Twitter, explained in a recent thread of tweets that he believes long positions on altcoins currently make more sense than long positions on Bitcoin, as many are currently bouncing off of long-established support levels.
“Though $BTC looks questionable, I think longs make more sense on alts. Many are at support, and many reasonable trades can be found with high RR. Here are a few examples on different TF’s. There were better entries, though since I’m posting this late these are market entries,” he noted.
Lucid further noted that he does believe Bitcoin is currently flashing some bullish signals.
“A few further factors to consider. The fact that BTC swept the lows weakens the bear case and increases likelihood of a break up (‘bart’ pattern). Longs/shorts are bullish, though to be taken with a grain of salt…” he said.
As the week continues on and Bitcoin further establishes whether or not it has enough support around its current price levels to climb higher, it is likely that altcoins will be able to maintain their upwards momentum and continue climbing higher.
Featured image from Shutterstock.