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Bitcoin has broken through the $61,000 barrier for the first time since early March, and markets are being bullish.
On April 10, the price of Bitcoin (BTC) reached $61,000 for the first time in nearly a month. Following the breakout, markets are beginning to search for new forms of resistance and help in the short term as sector confidence returns.
Aside from the all-time peak at about $61,800, there are three key Bitcoin price ranges to watch in the near term: $61,188, $58,387, and $53,000.
As long as the price of Bitcoin stays above $58,387 and keeps attempting to break out above $61,188, it would likely see a new record high in the foreseeable future.
If Bitcoin breaks out to a new record high, traders also anticipate the altcoin market to pullback slightly for the time being, at least until BTC starts to stagnate after reaching a new high.
$58,000 flipping into support is critical for more upside
According to the pseudonymous trader “Rekt capital,” the key for Bitcoin to cleanly reach a new all-time high in the coming days is to solidify $58,000 as a support area.
The $58,000 level is an important area because it marks the peak of the initial BTC rally to the $60,000 resistance level in mid-February, as shown in the graph below.
In technical analysis, when the price of an asset stabilizes above the previous peak, it is considered to be a very bullish sign.
The trader noted:
“BTC was able to still keep the red area even though it rejected from orange And in fact, the rejections from orange has been weaker Right now, BTC is pressing beyond orange [$58,000]. Turning orange into a support would bring Bitcoin very close to a new All Time High.”
Raoul Pal, the CEO of Global Macro Investor, emphasized that the macro view of Bitcoin remains positive.
Pal emphasized that Bitcoin broke out of a three-month range, which indicates that BTC’s technical momentum is starting to regain steam. He said:
“Kind of feels like a big deal to see BTC break a 3 month range and a wedge. It should create a powerful move to the upside. (Axis scrunched on chart to hint at the upside for dramatic effect.”
“Cactus” a cryptocurrency derivatives broker, also said that on-chain analytics are more powerful than ever, given that massive BTC exchange outflows suggest concentration by high-net-worth investors.
$BTC / USD
Seeing some huge bullish momentum for BTC…
– On-chain analytics are stronger than ever
– We are seeing biggest exchange outflow’s ever
– Previous monthly close is now support
– Highest weekly close ever likely to be printed pic.twitter.com/zovWNVrKuS
— Cactus (@TheCryptoCactus) April 10, 2021
As Bitcoin rallies, beware of altcoin stagnance
Meanwhile, other traders anticipate that once Bitcoin reaches price discovery once more, the altcoin industry will take a breather.
As the amount is swallowed up by Bitcoin, Kaleo, a well-known pseudonymous dealer, believes that altcoins would not rally nearly as fast as anticipated.
The trader explained:
“For those that are new, be careful being to deep into alts when $BTC is on the brink of price discovery. Profits from alts tend to flow back into Bitcoin. This doesn’t mean the USD price won’t go up, just that there’s a solid chance it won’t go up nearly as much.”
In the near term, Bitcoin is expected to outperform altcoins as it manages to surge, and the momentum can only turn to altcoins after BTC consolidates since hitting new peaks.