Bitcoin (BTC) started its long-awaited rally on February 23 when European markets opened with a modest rally.
Hourly candlestick chart BTC / USD (bit stamp). Source: Trading View
$ 39,600 designed to arouse “extreme resistance”
Data from Cointelegraph Markets Pro and TradingView showed that the BTC / USD pair rose rapidly on Wednesday, reaching $ 39,000 before consolidating.
The pair recovered sharply overnight, rising 6.8% from Tuesday’s lowest level.
“I do not seem to be retiring a bit, but he is really continuing to grow. It does not really change the structure much. $ 40,000 is the key level,” said renowned crypto trader Ed.
Earlier, Crypto Ed warned that any push to the $ 40,000 level could end in a bounce followed by a deeper correction than the one we saw this week.
To sum up the short-term scenario, trader and analyst Matthew Hyland, meanwhile, suggested $ 36,300 and $ 33,000 as valid support levels. For him, $ 39,600 is again a bullish resistance area that needs to be removed, as it was earlier in February.
Annotated BTC / USD chart. Source: Matthew Hyland / Twitter
The Cheds Twitter account added: “Expect great resistance and a potential denial in the 39.5K-40K range if we get there.”
Meanwhile, after entering Tuesday’s low, the analysis tool Material Indicators noticed a slight increase in buying behavior after several days of hesitation.
“Market buyers eventually got out of control and started pushing the green button,” he announced on Twitter, along with a chart showing an increase in orders for large and small purchases.
Meanwhile, a review of order book data from Binance’s main trading platform on Wednesday showed that the BTC / USD pair has begun to deal with a resistance area with its recent upside movement.
Binance order book data chart. Source: Significant figures.
Altcoins bounces back with talk of “all season”
Wednesday was a good day for altcoins as majors surpassed Bitcoin’s strong 24-hour performance.
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Ether (ETH) is up 6.1% to $ 2700 at the time of writing, showing several of the top 10 cryptocurrencies by market value.