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The crypto markets incurred a notable uptrend today that was catalyzed by Bitcoin’s rise to highs of nearly $9,000 before it incurred a slight influx of selling pressure that caused BTC to dip slightly lower.
Most major altcoins are now pushing up against key resistance levels as they take sight of revisiting their 2020 highs, although it is highly likely that their next move will closely track that of Bitcoin.
Because of this, it does seem as though this latest rally may simply be another lower high that is followed by further downside, as multiple technical formations are currently spelling trouble for BTC’s near-term price action.
Crypto Markets Rally Towards Key Resistance with Bitcoin Leading the Way
At the time of writing, Bitcoin is trading up just under 4% at its current price of $8,915, which marks a notable climb from its daily lows of $8,400 that were set early yesterday.
In the near-term, the key levels that analysts are closely watching exist at $9,000 and $9,200 respectively, as these are where bears have begun stacking significant sell orders in an attempt to halt the ongoing market-wide rally.
Bitcoin’s climb towards $9,000 has allowed virtually all major cryptos to rally concurrently, with Bitcoin Cash and Bitcoin SV leading the markets, trading up 7% and 11% respectively.
HornHairs, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he believes BTC may see a brief short-term pullback towards $8,800 before it makes a successful attempt to break $9,000.
“$BTC This smaller 5 min TF range will be telling, imo. When BTC gets going it’ll form these, sweep the highs and then the lows into demand and keep chugging upwards. If it fails that, good chance we cool off for a bit,” he explained while pointing to the below chart.
This smaller 5 min TF range will be telling, imo.
When BTC gets going it'll form these, sweep the highs and then the lows into demand and keep chugging upwards.
If it fails that, good chance we cool off for a bit. pic.twitter.com/OXbs5BU4na
— HornHairs 🌊 (@CryptoHornHairs) January 27, 2020
Massive Technical Resistance Could Halt the Market’s Growth
Because the future of the aggregated crypto market hinges on where Bitcoin goes next, it is imperative to note that the crypto is currently pushing up against a key technical resistance level that could halt the ongoing uptrend.
Dyme – a popular Bitcoin advocate on Twitter – recently noted that BTC is pushing up against its 200-day moving average, which could mean that it will face a massive rejection at this level.
“Well hi there mr 200 MA… are we staying here long or is this just a test?” He explained while referencing the below chart.
Well hi there mr 200 MA
are we staying here long or is this just a test? pic.twitter.com/ZJfQWqPY3F
— Dyme (@CryptoParadyme) January 27, 2020
How Bitcoin responds to this level in the coming few days will likely set the tone for its mid-term trend, subsequently giving guidance to the aggregated crypto market.
Featured image from Shutterstock.
