Key Bitcoin Takeaways
- Bitcoin posted modest downside corrections heading into the Tuesday session in Europe.
- The flagship cryptocurrency consolidates inside a crucial resistance area, anticipating an upside breakout.
- It is likely to continue its sideways move as traders’ focus shifts on the so-called “altcoin season.”
An ongoing Bitcoin price rally hit a small snag as it attempted to log a breakout move above $60,000 but lacked follow through due to a boom in the altcoin market.
The BTC/USD exchange rate was trading in the $56,770-60,000 area, providing day traders ample long and short opportunities to secure interim profits. Nonetheless, bulls remained focused on a clear breakout move above $60,000, an attempt that has failed repeatedly since late February 2021.
Today marks the second highest $BTC daily close ever.
We are a 3% pump away from fresh all-time-highs. pic.twitter.com/WwvXgPa8iE
— Luke Martin (@VentureCoinist) April 6, 2021
Bitcoin’s rally slowed down as traders’ attention shifted to newfound opportunities in the altcoin market. The past 24 hours saw some bitcoin rivals outperforming the benchmark cryptocurrency, with XRP — a controversial token backed by lawsuit-hit blockchain startup Ripple Labs — climbing more than 35 percent on a 24-hour adjusted timeframe.
Google searches for the keyword “altseason” — a backronym for altcoin season, also surged, showing a comparatively higher retail interest in alternative digital assets. That sapped traders’ intraday appetite for bitcoin, which struggled to move past $60,000.
Jonny Moe, an independent market analyst, closed his leveraged long position in the bitcoin perpetual market over fears that altcoin season could limit the cryptocurrency’s potential gains near-term. The social media influencer added that he would go bullish on Bitcoin once it closes above the $60,100-level.
Bitcoin is trading inside a descending channel pattern, which — most of the time — is bullish.
The cryptocurrency’s definite move above the 56,770-60,000 area expects to send the prices up by as much as the maximum distance between Triangle’s resistance range and the support trendline. That is around $18,500, which puts Bitcoin’s breakout target near $78,500.
Meanwhile, Bitcoin would need to invalidate a rising wedge pattern forming on the sideways before it plans a breakout to $78,500. A move above the resistance range could have traders interpret Wedge’s upper trendline as their next resistance target. That could follow up with a pullback towards the then-flipped resistance area.
Bitcoin could parallelly watch its 50-day moving average (the blue wave) as support. A rebound from there would put it back on track to pursuing higher highs.