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Bitcoin will require several attempts, but resistance should eventually fall to bulls; however, market participants explain that a healthy consolidation is also required.
On Tuesday, Bitcoin (BTC) traded steadily after a surge above $40,000 resulted in higher levels broadly holding.
All eyes on Bitcoin higher lows
Data from TradingView showed BTC/USD hovering near $37,000, around 8.8% below the peak of Monday’s gains.
Bitcoin price action is now attempting to consolidate and form support at a higher low after making its first trip above $40,000 in six weeks, according to Cointelegraph contributor Michaal van de Poppe.
“Bitcoin rejects at the range high, which isn’t strange,” he explained in a Twitter update Tuesday.
“The market has made a new higher high and is in search of a higher low. The levels that I’m watching are $34,500–35,800 and the area around $32,500.”
A look at buy and sell levels on major exchange Binance confirmed the significance of those price points, with buyer support significantly in evidence only below $36,000. Sellers, on the other hand, remained clustered at $40,000 and above.
The area immediately after $40,000 remains a decisive hurdle for Bitcoin bulls to overcome, with analysts arguing that doing so would trigger the bull market continuation that so many are hoping for.
“Did people really expect 45-48k in one day?” popular trader Pentoshi reasoned.
“You broke the downtrend on high volume, you broke back into the range and made a HH on the daily. You teleported to resistance, it could take 2 or 3x to break it but that’s coming in the next weeks imo. Dips are for buying.”
That scenario would put BTC/USD on track to reach $47,000 in August, the minimum – albeit contentious – monthly close predicted by PlanB, the creator of the stock-to-flow model.
Trader: “Most” altcoins have reached their bottom.
Meanwhile, Bitcoin’s drop from local highs posed a problem for altcoins.
Ether (ETH), the largest altcoin by market capitalisation, fell 11% after a copycat move to a new high of $2,432 on Bitstamp.
Many major altcoins fared likewise, with 24-hour losses of 10% or more not uncommon at the time of writing.
“The great part is that altcoins are following suit with Bitcoin and will most likely run towards their other side of the range too,” van de Poppe nonetheless added in a hopeful forecast, repeating previous conviction about the altcoin market.
“This means 80–150% run from the lows. I think most of them are bottomed.”