Bitcoin has been incurring volatile price action over the past several days and weeks, which has ultimately resulted in it ranging sideways within the mid-$7,000 region. BTC has been inching higher over the past several hours and is close to nearing its next key resistance level.
Analysts anticipate BTC to be rejected at this level, which could subsequently lead it to continue ranging sides. To the benefit of investors, this consolidation period may give major altcoins some decent room to run.
Bitcoin Likely to Face Rejection at $7,800, Which May Lead Altcoins to Rally
At the time of writing, Bitcoin is trading up marginally at its current price of $7,580, which marks a slight climb from its daily lows of $7,450.
Bitcoin did climb as high as $7,650 this morning before incurring an influx of selling pressure that sent it reeling down to its current price levels.
Over a one-week period, BTC has been slowly grinding higher, with its tempered momentum first being incurred when the crypto found strong support at $7,200. In spite of this, the crypto did face a sharp and fleeting surge up to $7,800, which was followed by a sharp rejection.
While looking towards Bitcoin’s 12-hour chart, it does appear that the crypto is close to forming an EMA bull cross, although it still remains too early for this bullish pattern to be confirmed.
“$BTC #Bitcoin 12 hour – Flirting with a pending 8/34 EMA bull cross, still early though,” Big Cheds, a popular cryptocurrency analyst on Twitter, explained in a recent tweet.
In spite of this potentially bullish development, other analysts anticipate Bitcoin to see strong resistance around its current price levels.
HornHairs, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, saying:
“$BTC: 4H printing a bearish SFP at monthly open resistance. Looks more likely to retrace and range around from here down to the weekly open than continue upwards for the next day or two. Implications being this will give $ALTS more time to run.”
Assuming Bitcoin does enter into a bout of sideways trading here, major altcoins may be given a chance to put some distance between their recent lows and gain some upwards momentum against their BTC trading pairs.