Bitcoin and the aggregated crypto markets have been facing increasing bearishness over the past several days and weeks, with many major altcoins posting massive losses as BTC remains stuck below the key resistance levels that will determine whether or not its market structure is bullish.
One prominent analyst is now noting that the crypto markets may be on the cusp of incurring a significant amount of bullish momentum that could help them put a significant amount of distance between their recent lows.
Crypto Markets Inch Lower as Altcoins Follow Bitcoin’s Lead
Most major cryptos have been closely tracking Bitcoin’s price action over the past several days and weeks, which has led the markets significantly lower as it has remained in the firm control of its bears over the past several weeks.
Bitcoin’s downwards momentum first began when it failed to stabilize above the $10,000 level in late-October, which sparked a downtrend that has lasted throughout November and may extend as we head into the end of 2019.
This downtrend has reached beyond Bitcoin and has impacted virtually all major altcoins. XRP is currently trading at fresh yearly lows in the low-$0.20 region, while Ethereum is trading at the lowest prices seen over the past several months.
Where the aggregated crypto markets head next will likely be dictated by whether or not BTC will be able to climb from its recent lows and develop a bullish market structure, or if it will continue dropping lower.
Teddy, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that Bitcoin will only be able to find noteworthy bullishness if it climbs and stabilizes above its near-term resistance at roughly $8,000.
“BITCOIN | $BTC: Perfect close on the support of pattern, followed by a bounce. There are only two clear breaks that will confirm a bullish continuation, noise aside: BREAK OF RED LINE: – Key level for bull structure. BREAK OF DOTTED LINE: – Key support flipped resistance,” he said while referencing the lines seen on the chart below.
Will Cryptocurrency Markets Soon Post a Strong Rebound?
Assuming that Bitcoin either stabilizes around its current price level or begins inching higher to form a bullish market structure, the aggregated crypto markets may be close to posting a strong rebound.
Bitcoin Jack – another popular cryptocurrency analyst on Twitter – explained in a tweet that he believes altcoins may soon begin surging higher.
“If we print a signal of strength, you better be paying attention because things could start moving like before. Alts are up 25% vs BTC since September 6 but if we see the SoS then we could quadruple this quickly,” he noted while pointing to the below chart.
If we print a signal of strength, you better be paying attention because things could start moving like before
Alts are up 25% vs BTC since September 6 but if we see the SoS then we could quadrupple this quickly pic.twitter.com/xpBdEAiULC
— //Ethereum ?ack ? (@BTC_JackSparrow) November 26, 2019
How Bitcoin trends in the near-term will likely have significant influence on the aggregated crypto markets, and any near-term BTC bullishness could spark a significant relief rally for most major altcoins.
Featured image from Shutterstock.