Today (April 2) is one of the days that define the cryptoasset markets, with dramatic movements that exceeded most people’s expectations.
In the early hours of April 2, Bitcoin (BTC) shattered multiple resistance levels after breaking out of the all-important $4,200 resistance point, which concluded a more than month long uptrend. The market structure of late 2018 and Q1 2019 was totally dismantled, and we now wait in a period of flux as a new structure outlines itself.
From bottom to top, BTC’s total movement was 25%, or about $1,000. The leading cryptoasset has naturally retraced from this movement, as the market scrambles to grapple with the breakout.
But this retrace has been rather shallow, and this is very encouraging for the crypto market’s prospects. The biggest - almost unbelievable - level taken by Bitcoin was the critical 200 day simple moving average. This important indicator is often used as the fencepost for a bull versus bear market.
Closing the daily candle above this level, at about $4,620, would be very promising, and suggest that these impressive gains can be held.
Failing $4,620, some analysts have named $4,500-300 the critical zone to hold. At any rate, the critical $4,200 price resistance from the previous market structure will now act as support. Some retest of this level from above is surely possible if not likely.
In addition, if Bitcoin can stay within its current sideways range, it would quickly begin to resemble a bull flag.
A further breakout for Bitcoin, should it come, would encounter some resistance around $5,400, and finally at $6,000 - the 2018 baseline.
The other question at hand is the altcoin market. Most altcoins are up versus USD, but down versus Bitcoin. This is completely typical for the cryptoasset markets. Should Bitcoin continue to be stable enough above the key levels it has broken - and confirm previous resistance as new support - the altcoin markets may follow Bitcoin's impressive rally.
Many in the crypto industry and community are optimistic about today’s dramatic breakout. But not everyone is, ZebPay CEO Ajeet Khurana told CryptoGlobe that:
At present the market sentiment is sitting on a razor thin wall. One small positive push and it will shoot up, and vice versa. We are at a unique point when the bets in the Bitcoin market are almost evenly split with half of the money expecting an imminent doubling of price, and the other half a halving. So today as we saw a sudden buying interest from some quarters, the balance momentarily tilted in the favor of the bulls.
Indeed, the market has yet to confirm its exuberant statement. Many will take profit on these gains, and it is not yet proven if Bitcoin has turned the corner out of the bear market. A new market structure has been suggested, not agreed-to. Now is the time to contain trading emotions!
(The views and opinions expressed here do not reflect that of CryptoGlobe.com and do not constitute financial advice. Always do your own research.)