Following the market’s recent surge upwards that occurred over this past weekend, Bitcoin has so far been able to maintain just a hair above $4,000, which has led to a prolonged sideways trading session for most major altcoins.
This sideways trading has extended into today, with most altcoins either trading up or down marginally.
Analysts Have Differing Views on Where Bitcoin Will Face Resistance
Although the markets are currently caught in a bout of relative stability, the Directional Movement Index (DMI) signals that they may soon make an upwards move, led by Bitcoin, which begs the question: where is Bitcoin’s next level of significant resistance?
As discussed in yesterday’s market update, Mati Greenspan, senior market analyst at eToro, explained in a recent note that he believes Bitcoin is caught in a wide trading range between $3,000 and $5,000, with a major point of resistance existing at the latter price point.
“If we zoom out…we can see that the overall range that we're in is from $3,000 to $5,000 per coin… So we're now at the halfway mark in the middle of the broader range,” he explained.
Furthermore, Greenspan rejects the idea Bitcoin’s current price level is an important psychological price point.
“Even though $4,000 is a nice round number it doesn't necessarily represent any sort of significant psychological level,” he noted.
Despite this, while speaking to Forbes, Jon Pearlstone, the publisher of the CryptoPatterns newsletter said that the first level of resistance that Bitcoin faces is at its 2018 trend line that is currently at the $4,500 level. He further noted that a break above this price “would likely lead to a retest of key resistance at the $6000, a level that held for months.”Bitcoin, Altcoins,
Experience Mixed Trading Session
Traders are closely watching to see how Bitcoin responds to the low-$4,000 region, which it has so far been able to defend since it first reached this price point on Sunday.
At the time of writing, Bitcoin (BTC) is trading up marginally at its current price of $4,040. Yesterday, Bitcoin’s price dipped to lows of just under $4,000, which was quickly defended by bulls who sent its price up to highs of over $4,100. Although bulls have so far defended $4,000, they have not yet built up enough buying pressure to propel Bitcoin’s price to the next key resistance levels.
Ethereum (ETH) is currently trading down approximately 0.5% at its current price of $151, and appears to be establishing the high-$140 region as a level of relative support.
XRP is closely following Bitcoin’s price action and is trading up marginally at its current price of $0.365.
Litecoin (LTC) is one of the few altcoins that has surged today, and is currently trading up over 4% at its current price of just under $40.