Bitcoin (BTC) reversed its recent rally and dropped 1.5% on April 6 when the bulls were disappointed with no sign of an attack at the highest levels ever.
1-hour candlestick chart BTC / USD (Bitstamp). Source: TradingView
Bitcoin “likely” crushes $ 60,000 resistance
Cointelegraph Markets Pro and TradingView hit local lows at $ 57,340, hitting Tuesday after another failed attempt to breach the $ 60,000 resistance level.
Despite being away from several thousand dollars all the time at $ 61.700, BTC / USD was unable to drive the sellers away forever. As the dilution evolved, the last resistance tape became in place.
This slowdown in the bull market in 2020-21 has frightened some, but professional analysts remain steadfast in their optimistic estimates of the largest cryptocurrency.
Among them is Bloomberg Intelligence, which on Tuesday forecast that the second quarter is likely to rise to $ 80,000 more than a surrender $ 40,000.
The new report states: “The adoption of the standard cryptocurrency as a global reserve capital has crossed the threshold as we see it, and the market wave is growing. This scenario has shifted the focus of our analysis for 2021 towards more technical indicators. From a wide range of fundamental measurements and networks in years. Last. ”
“The most likely scenario for the second quarter is to overcome the resistance of $ 60,000 versus $ 80,000. In our opinion, it is unlikely that there will be reserves to support $ 40,000.”
Mike McGlone, Bloomberg’s chief trading analyst and author of the report, is known as the Bitcoin bull, and his view reflects this from various analytical sources claiming their own reasons for market confidence.
He also noted that when it comes to the reserve share, Bitcoin spends land that was previously reserved for gold. He said that the precious metal “will always have a place in jewelry and coin collections”, “but most indicators point to the acceleration of Bitcoins replacing the metal as a store of value in investors’ portfolios.”
The report summarizes: “Bitcoin’s fundamentals and technical fundamentals are improving while gold is declining.”
Altcoin Wake Up Call sees benefits
Meanwhile, Altcoins had more reason to cheer than the average bitcoin investor that day, when the big cryptocurrencies made strong weekly gains.
These included Ether (ETH), which hit an all-time high of around $ 2,150, and XRP, which broke the $ 1 barrier for the first time since 2018 before the adjustment.
Binance coin (BNB), the second-largest altcoin by market capitalization, rose 3.4% to $ 388, posting gains of over 33% during the week.
“Big-cap cryptocurrencies are about to wake up,” declared a popular Twitter trader Rekt Capital.
The accompanying graph indicates that smaller altcoins will feel the benefit when the larger coins exceed their performance. According to a Cointelegraph report, altcoins worked better when Bitcoin spent a reasonable amount of time consolidating after a bullish rally.
The dominance of Bitcoin’s market value on that day was 55.1%, the lowest since May 2019.