Altcoins May Point to Imminent Bitcoin Pullback

Bitcoin has been caught in a bout of consolidation after incurring some significant upwards momentum late-last week, but it has failed to advance towards or past its nearest level of major resistance around $10,800.

Now, analysts are noting that various major altcoins could be giving the markets insight into which direction Bitcoin is heading next, with one prominent analyst setting a relatively low target at around $10,250.

Bitcoin Stabilizes Around $10,500, But Further Losses Could Be Imminent

At the time of writing, Bitcoin is trading down roughly 1% at its current price of $10,540, which marks a fairly large drop from its 24-hour highs of nearly $10,700, but also marks a large increase from its weekly lows of $9,400.

BTC’s recent run from the lower-$9,000 region further confirms that this price region is a strong support level for the cryptocurrency, as it has found strong buying pressure here on multiple occasions over the past couple of months.

In spite of Bitcoin’s recent bullishness, many major altcoins are continuing to express bearish conditions, as many are trading down nearly 3% today.

Currently, Ethereum is trading down 2.75% at its current price of $172.54, with XRP and Bitcoin Cash both posting similar losses at 2.1% and 2.9% respectively. 

UB, a popular cryptocurrency analyst on Twitter, mused the possibility that the negative price action in the altcoin markets is a sign of what’s to come for Bitcoin, explaining that he is targeting $10,250 for BTC in the near-future.

“$BTC – I believe alts and ETH are giving us some insight on what’s to come for Bitcoin. I’m looking for a pullback to the mid $10,250s area. ~$10,600 is a key intraday S & R, above there and I’ll reevaluate my current argument,” he explained.

As UB noted, $10,600 has proven to be a resistance level for Bitcoin over the past several hours, as it has faced multiple rejections at this price point that has pushed it down towards $10,500, which appears to be a support level for the cryptocurrency.

If BTC is able to break above $10,600 in the near-future, it will likely mean that the crypto is once again going to target its next resistance level around $10,800, with a break above this level potentially sending it past $11,000.