Over the weekend, after four months Bitcoin breached $10,000 level but it couldn’t stay here for long and went down to $9,730.
The crypto market seems to be unsure of what to do at the moment as it failed to hold the $10,000 line. The market is “a bit fatigued from all the gains,” says Mati Greenspan, founder of Quantum Economics in his daily newsletter.
This 4.6% drop filled the CME gap that opened today which according to experts is a ‘buy the dip opportunity.’
“It’s too funny that everyone turns into panic mode, the moment that crypto retraces a bit. We’re up 50% since the low at $6,400. Altcoins even more. A retrace is healthy to generate fuel for the next move. It’s even an opportunity. It won’t go up in a straight line,” says trader Crypto Michaël.
Golden Cross Coming this Week
Bitcoin might have made a healthy pullback but Greenspan says “At this point we’re still looking at an aggressively bullish trajectory.”
Towards the end of January, Bitcoin had a double breakout. 200 Day Moving Average and downward facing channel both were pulverized on Jan. 29.
Now we are approaching a golden cross which Greenspan, former eToro analyst says is likely to happen this week. A technical pattern, the golden cross is a bullish signal that appears when an asset’s short-term moving average crosses above its long-term moving average.
This long term indicator indicates a bull market on the horizon but a major resistance is expected at $12,000.
But Bitcoin could Range in the Coming Weeks
This indicator tells us that a bull market is on the horizon but trader Crypto Michaël says the world’s leading cryptocurrency is expected to range in the coming weeks, a relative period of calm.
Fundstrat Global Advisors’ Rob Sluymer also sees BTC trading in a range of $10,000 to $11,000 in the second quarter.
“Nothing goes up in a straight line,” and that is why Bitcoin could take a breather. During this period, the digital asset “accumulates back again on a higher level before it continues to move towards the next resistance,” said Crypto Michaël.
As we saw, $10,000 couldn’t provide “substantial support” this time as the move seems to be “a bit overextended.”
However, “We still might be in for a slight corrective move on BTC to $9,400-9,600” but if we manage to hold support in $9,300 and $9,000 areas, we could see a continuation to the upside, targeting $11,000 and $12,000, he said.
“There’s no reason to be bearish at all, retracements are healthy and should provide a nice buy the dip opportunity,” added the trader.
Gains for Altcoins Until BTC FOMO Breakout
Bitcoin ranges however, is a bullish sign for altcoins which are already showing “significant strength” and outperforming Bitcoin.
With 269% gains in 2020, Bitcoin SV is leading the market gains followed by Lisk (242%), Bitcoin Diamond (231%), Dash (196%), Ethereum Classic (159%), Bitcoin Gold (146%), Zcash (144%), and Bitcoin Cash (116%).
This slowdown for bitcoin would give altcoins another opportunity to jump higher, says trader CryptoWolf while Crypto Michaël says “if altcoin market cap breaks the $103-113 billion resistance, I think we’re in for a ride towards $300 billion.”
However, altcoins will enjoy bulls up until Bitcoin gets the FOMO (fear of moving out) breakout before the reward halving in May 2020 to $17,500, said Crypto Michaël.