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Bitcoin Price Skyrockets, But BTC Faces Growing Resistance Around $4,000

Bitcoin has been able to maintain its upwards momentum that it incurred a few days ago and BTC has now pushed up to $4,000. This upwards price move has been fueled by a surge in trading volume, but one analyst is now importantly noting that trading volume over high-time-frames must improve in order for an upwards price move to be sustained long-term.

Other analysts are also importantly noting that Bitcoin is now beginning to establish $4,000 as a level of resistance, which could prove to be a critical level that must be broken through in order for further gains to ensue.

Bitcoin (BTC) Continues Climbing, But Faces Resistance at $4,000

At the time of writing, Bitcoin is trading up nearly 3% at its current price of $3,985. Bitcoin began its recent push on February 17th, when its price dipped to $3,600 before surging to its current price levels.

Following this move, BTC traded sideways for less than a day before continuing to climb until it hit approximately $4,000, which has proven to be a level of resistance.

Lucid TA, a popular cryptocurrency analyst, spoke about this resistance level in a recent tweet, noting that he believes BTC will rest around its current price levels before continuing climb.

“$BTC is hitting the first significant resistance since the breakout, I think we’re likely to rest a little while here.”

Hsaka, another popular analyst, shared a similar sentiment in a recent tweet, telling his followers that he will begin looking to short Bitcoin when its price reaches the low-$4,000 region.

“$BTC Not looking to short until the demarcated zone. Meanwhile, here’s an alternate way to find confluence with your S/R levels. Divide up a range/swing into quarters.”

Because Bitcoin and the entire cryptocurrency markets are fresh off of a large price surge, it is likely that they will range sideways, or drop slightly, before garnering enough buying pressure to propel them higher.

Analyst: Bitcoin Trading Volume Must Increase in Order for Price to Surge Higher

One notable feature of this latest BTC price surge is that its 24-hour trading volume has climbed significantly, surging from weekly lows of under $6 billion to its current levels of roughly $10.5 billion.

Josh Rager – another popular analyst – explained that over a longer time frame, Bitcoin’s trading volume is down significantly and an inability to continue increasing may lead BTC’s price back down to its support levels in the low-$3,000 region.

“$BTC Chart: Bitcoin currently at resistance level with a break and close above $4100 is bullish… But… Volume continues to decrease on high time frames: the decreasing volume w/ rising price = bearish. If the volume doesn’t pick up, I foresee $BTC price dropping back to support,” he explained.

As Bitcoin begins picking up steam and recovering much of its recent losses, analysts will likely gain further insight into whether or not this is a sustained movement, or if a drop back to its strong support level of $3,000 is inevitable.

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Crypto Market Cap at Critical Resistance, Is Altcoin Season Around The Corner?

The current crypto winter and bear market has been brutal for Bitcoin investors who are now underwater, but it’s been even worse for many altcoin holders.

Most of the thousands of altcoins on the market have fallen as much as 99% from their all-time high prices, have reached extremely oversold conditions, and are at the absolute bottom of the barrel sentiment-wise. However, according to one crypto analyst, altcoins are on the verge of breaking out of long-term downtrend resistance and an “altseason” may be around the corner.

Analyst: Altcoin Crypto Market Cap at Pivotal Resistance Point

Altcoins such as Ethereum and XRP have had a much further fall from their all-time high prices than their eldest sibling, Bitcoin. Bitcoin has fallen roughly 85% from its previous peak back in December 2017, while number 2 and number 3 cryptocurrencies Ethereum and XRP respectively have each fallen 90% from their high points.

Related Reading | XRP Beware? Industry Reacts to JP Morgan ‘JPM Coin’ Crypto Announcement

The added sell pressure has caused sentiment around altcoins to be at extreme lows, but the tides may be turning soon, if critical resistance can be broken.

According to a chart shared by prominent crypto analyst GalaxyBTC, the altcoin market cap – an aggregate of the total crypto market cap minus BTC – is at pivotal overhead resistance that has served as such all the way since January of 2018.

The early signs of an “altseason” are already showing, with Ethereum, EOS, and BCH all posting 15-25% gains on the day, while Bitcoin rose just 8.5% by comparison. The rest of the altcoin market is a sea of green today, as a clear sentiment change is occurring in the crypto space.

Bitcoin Has Long to Go Before Downtrend is Broken, BTC Dominance to Suffer

GalaxyBTC also shared some thoughts around a pattern commonly found in cryptocurrency trading. The analyst discovered that oftentimes following a build-up of BTC dominance – a metric that weighs Bitcoin’s market cap against the rest of the crypto market – it breaks down, causing a spike in altcoin dominance also referred to as an “altseason.”

The reason for this could be normal ebb and flow of capital to and from Bitcoin into altcoins, faith being restored by crypto market participants, or quite possibly due to the fact that most altcoins have broken through downtrend resistance, while Bitcoin hasn’t.

A chart shared by Senior Market Analyst for eToro Mati Greenspan shows that Bitcoin still has a long way to go before it brushes up against the downtrend resistance. The resistance dates back to January of 2018, after the first ever crypto’s parabolic advance was broken, kicking off the bear market that continues even today.

Related Reading | Bottom Doesn’t Matter, Last Time General Population Can Afford Entire BTC

Altcoins and Bitcoin are closely correlated, so a strong rally in the altcoin market could help restore confidence in Bitcoin again, and drag Bitcoin up through resistance along with the rest of the cryptosphere.

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Analyst: Bitcoin Holding $3,550 Means “Next Strong Move” is Building

Ever since Bitcoin (BTC) suddenly ran on February 8th, posting a jaw-dropping performance that came straight out of left field, the broader crypto market has entered a lull. While there have been a few notable movers, like Binance Coin (BNB), the broader digital asset class has all but stopped moving. Price action has effectively come to a standstill.

This has left many asking, what’s next for the cryptocurrency market? While one analyst couldn’t give a definitive answer on whether BTC will move higher or lower, he argues that a breakout is festering, and is inbound.

Related Reading: Bitcoin Price Weekly Analysis: BTC Signaling Bullish Continuation, $4K Incoming?

Analyst Hints At Bitcoin Breakout

Josh Rager, an advisor to TokenBacon and Blackwave, recently took to Twitter to convey some analysis regarding Bitcoin’s chart. While Josh didn’t have any explicit predictions, due to the non-volatility in BTC’s value, he did note that as the cryptocurrency has yet to break under its “weekly historical support level,” it is likely building its “next strong move.”

As aforementioned, he didn’t definitively or tacitly mention what which Bitcoin could head after its ends this lull, but considering theories regarding the “Bart Formation,” some believers claim that BTC could plummet just as fast as it rallied on February 8th.

Josh’s recent comment comes after he took to his Twitter soapbox to make an astute comment. Per previous reports from this outlet, the popular industry personality remarked that after 2019, potentially only a few in the “general population” will be able to afford an entire BTC. He added that while global income per household figures could swell, due to inflation, solid economic conditions, and other factors, after 2021, BTC’s “speculative value could be out of reach for most.”

Crypto Could Fall Further

Interestingly, for once in a blue moon, few commentators are sure where the crypto market is headed in the short-term. But as reported by NewsBTC previously, the few analysts that have issued forecasts in these mundane market conditions expect losses in the near future.

Hsaka, a well-followed crypto trader, recently explained that while the chart indicates a “stalemate” between the bulls and the bears, BTC may be leaning towards more downside. Haska’s peer, TraderArjun, echoed the sentiment that downside is in Bitcoin’s cards. Arjun wrote that ever since BTC entered the 3,000s, he’s been wary that a continuation of the sell-off is likely, if not inbound.

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CME’s Duffy: Crypto Needs to Brown-Nose Governments to Succeed

Over the past year, crypto has struggled from a price standpoint. Thus, many investors that are looking to “HODL” have sought the light at the end of the tunnel that is institutional participation. But, one Wall Streeter, who has expressed some semblance of support for Bitcoin, recently claimed that this facet of the ecosystem just isn’t there yet.

CME CEO “Not Sure” Bitcoin Bottom

Since Bitcoin fell off the public’s radar in mid-2018, most incumbents of the legacy world have shut their trap, so to speak, regarding the subject matter. But, Terry Duffy’s interview on Bloomberg TV took a turn for crypto on Thursday.

In response to an inquiry from a Bloomberg host regarding if the value of the flagship cryptocurrency has established a bottom, the CME Group chief executive noted that he’s “not quite sure,” likely accentuating that he doesn’t keep up-to-date with this whole ecosystem.

Related Reading: Bitcoin Bottom Doesn’t Matter, Last Time General Population Can Afford Entire BTC

Duffy’s hesitant response on this matter comes as a number of analysts claim that Bitcoin has further to fall.

As reported by NewsBTC previously, Murad Mahmudov, a partner at Adaptive Capital, recently claimed that Bitcoin could find “steady support” at an MA300 of around ~$2,400. However, the prominent analyst made it clear that Bitcoin could “wick down” to as low as MA350~400 in the $1,700 range, “due to past patterns and how particularly overstretched the 2017 bubble was.”

Other made similar remarks. One crypto commentator recently noted that if history rhymes, BTC could fall to as low as $750 by mid-year, citing fractals and technical analysis.

Then again, some have been more optimistic. Leading researcher Filb Filb recently explained that there are  “staggering pre-halvening similarities [between] 2015 [and] 2019.” More specifically, he noted that if the price action seen in 2015’s bubble plays out today, BTC will bottom in the coming weeks, before embarking on a strong rally heading into 2020’s halving event.

Crypto Needs Governments To Succeed

On the matter of his futures product, Duffy stated that from the perspective of the CME, it just wanted to list Bitcoin in a controlled manner to appeal to regulators. That led him to his next point about institutional involvement. The investor noted that the “bottom line” is that until global governments start to accept cryptocurrencies, whether it be Bitcoin, XRP, Ethereum, or even JP Morgan’s own digital asset, it will be “very difficult for the major commercials to come into this space” in a gung-ho fashion.

Thus he determined that for cryptocurrencies, or any other nascent market for that matter, to succeed, the ecosystem surrounding them will need to gain approval from governments.

While strides are being made, such as through statements of support from the U.S. SEC’s Hester Pierce or other pro-crypto moves, this is more than likely an uphill battle.

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Bitcoin (BTC) Stable Above $3,600, But Analysts Warn That Further Losses are Likely

Bitcoin has continued to express stability around its current price levels in the low-$3,600 region. Despite being stable currently, BTC has not been able to garner any buying pressure at its current prices, which may signal technical weakness.

Now, analysts are claiming that Bitcoin may see further losses in the near-term, as its price has not yet seen any surge that would signal that it was previously oversold.

Bitcoin Fails to Find Buying Pressure at Current Price Levels 

At the time of writing, Bitcoin is trading down nominally at its current price of $3,625. BTC has been stuck around this price for several days now and has failed on multiple occasions to move any higher.

Although last Friday’s price surge led many traders and analysts to believe that BTC was oversold in the low-$3,000 region, one analyst is now claiming that its inability to continue climbing signals that it was not, in fact, oversold at $3,400, and may continue to drop in the near future.

“Bitcoin continues bouncing around in the upper $3K range. But we saw this same behavior at $9K support, $8K support, $7K, $6K, $5K and $4K. By now the pattern is pretty obvious. Investments that are oversold bounce quickly and sharply from those grossly unjustified levels. The lack of a decisive bounce tells us that bitcoin is not grossly oversold yet. That means lower prices are still ahead of us,” explained Jani Ziedins of the Cracked Market blog while speaking to MarketWatch.

Bitcoin Support Getting Increasingly Weak as it Continues Ranging

Over the past few days, Bitcoin has been caught in a narrowing trading range between $3,550 and $3,630, which has led to a bout of choppy trading within this small trading range.

Analysts seem to concur that Bitcoin will see further losses before finding a region of strong support.

In a recent tweet from Hsaka, a popular cryptocurrency trader on Twitter, he noted that as of now he is cautiously bearish on Bitcoin despite its current involatility.

“$BTC…Haven’t the slightest as to which way this expands… A right proper stalemate as of now, wicks on both sides without any follow through of either… If I was hard-pressed, I’d say I’m leaning towards more downside,” he explained.

Hsaka isn’t the only popular cryptocurrency analyst on Twitter who is currently bearish on Bitcoin. TraderArjun recently told his followers that he also expects Bitcoin to break downwards in the near-future, with a downside target currently set in the low-$2,000 region.

“$BTC Watching the price action since we got into this range, this is the probable continuation scenario going forward imo. Would love to hear a technical counter argument for an opposing view to challenge this bias…”

As the cryptocurrency markets enter the weekend, it is unclear as to whether or not they will see increased volatility resulting from lower-than-average trading volume, or if they will continue to trade sideways.

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