Bitcoin price momentarily surpasses $32K, but traders are cautious of a “relief rally” if resistance remains.

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If Bitcoin’s daily close fails to impress, it may be unable to make good on its Bank of America push.

Later on July 16, Bitcoin (BTC) crossed $32,000 as favourable reactions to Bank of America’s (BoA) Bitcoin futures approval persisted.

 

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bitcoin nears $32,300 point of interest

Data from  TradingView showed BTC/USD rising 1.4% on the day to hit new local highs of $32,150 on Bitstamp.

Following the BoA news, the pair saw a dramatic reversal of direction, having already hit $31,000 support many times throughout the day.

As a result, a critical zone to reclaim for probable bullish continuation, $32,300, was again back on the table, despite the fact that this seemed an implausible target just hours before.

When it comes to the daily close, present levels are critical for trader and analyst Rekt Capital.

“BTC needs to reclaim orange as support if BTC is to maintain the upper half of this blue wedging structure,” he explained accompanying a graphic.

“If BTC can’t reclaim orange as support, today’s recovery could merely be a relief rally to confirm orange as resistance.”

BTC/USD 1-day candle chart with wedging structure. Source: Rekt Capital/ Twitter

As reported, on the lower end, $31,000 remained as a crucial breaker whose failure to hold would open the door to $24,000.

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Altcoins pare daily losses

Bitcoin’s most recent rise had an instantaneous ripple impact on altcoins.

On Friday, daily losses across major cryptocurrencies were roughly 5%, but these quickly evaporated, and several altcoins even began recording profits.

At the time of writing, the largest cryptocurrency, Ether (ETH), was trading at $1,923, launching towards the $2,000 level away from a support zone at $1,800.

ETH/USD 1-hour candle chart (Bitstamp). Source: TradingView

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