The price of Bitcoin surged to the $38,000 level in the past 24 hours, but then retraced and lost $37,000. Such movements are not uncommon, and we have seen similar ones during the ongoing bullish period. So, what should we pay attention to in the next phase? What is the current situation of Bitcoin and altcoins?
Profit-taking after resistance tests is considered normal. Especially when investors are eagerly awaiting the surpassing of new resistances, they can turn to profit-taking after failed tests like this. The price of BTC reached $37,950 about 15 hours ago, but failed to close the day in this range. The price dropped due to profit-taking.
During market uptrends, resistances are tested, followed by corrections, and then new tests occur. BTC has done the same thing many times to surpass $36,000. Just as supports weaken during a downtrend, we can expect the same weakening of resistances now. The critical level for Bitcoin is $34,400, and as long as there are closures above this level, we may see new tests.
The weekly chart tells us that if the rapid uptrend continues, we need to surpass the $38,000 resistance by Sunday. If it fails to do so, we may witness a drop in price below $34,000. This situation may also bring a strong selling risk for altcoins.
So, what will happen if BTC breaks above the $38,000 resistance? In that case, the rally may continue up to $40,000, with a possible pause near $40,500.
Altcoins are experiencing rises or falls depending on the performance of Bitcoin. BTC performance determines the overall market sentiment, and it has decreased by 2.38% on a weekly basis. ETH is relatively strong, with gains of nearly 5% and successfully defending the $2,000 level. The news of BlackRock regarding XRP turned out to be fake, causing the loss of the challenging resistance at $0.65. Positive news is needed to overcome this intense supply zone.
The cumulative value of cryptocurrencies is around $1.4 trillion, with a cumulative volume of over $70 billion, and interest is still strong. The decline in BTCD and the stable price of ETH can lead to some surprising increases in altcoins.
In the past 24 hours, the prices of KAS, YFI, and RNDR Coin have increased by over 20%.