Bitcoin Breaking Past $5,000 Could Confirm Bullish Trend Reversal
Ethereum Catalyzed Latest Crypto Rally
On Sunday, the crypto market began to rally out of nowhere. While some analysts expected the move, with one even calling for Ethereum (ETH) to undergo a “major shift,” most were caught off guard by this move. So, what caused it? According to Mati Greenspan of eToro, who recently appeared on BlockTV’s “Cryptonomics” segment, the recent rally, which pushed Bitcoin (BTC) past $3,800, has a lot to do with Ether.
Greenspan noted that on Sunday, Ether suddenly spiked. While such a move was initially contained, other cryptocurrencies began to spike as well, thus leading the eToro in-house crypto trader to note that Ethereum practically catalyzed the rally. The reasons for Ethereum’s drastic and sudden move higher was covered in a previous report from this outlet.
After discussing the latest rally, BlockTV’s host asked Greenspan about his thoughts if this uptick could be continued in the coming days. While he was hesitant to give a prediction, Greenspan did note that a further move to the upside is a possibility. He explained that if Bitcoin clearly breaks above $5,000, with volume and community sentiment, that would confirm that a reversal had occurred and the bear market could be coming to an end.
As of the time of writing, BTC is pushing $4,000, finding itself up by 0.8% and situated at $3,980. Altcoins have also posted gains, with ETH, XRP, among a handful of others being up by 2%.
The Ever-Important $5,000 Range For Bitcoin
Greenspan isn’t the only analyst convinced that the $5,000 zone is an all-important level for Bitcoin to test in the coming months. Financial Survivalism, a notable crypto trader that recently bet Murad Mahmudov 0.1 BTC that Bitcoin will hit $1,165 before $10,200, noted that if the cryptocurrency continues to run, it won’t be easy. More specifically, the insurance agent turned full-time markets trader, noted that he is currently keeping a close eye on the $4,600 to $4,800 range for Bitcoin, as that’s where the essential 200-day exponential moving average and long-term bear trendline have found a home.
For those who missed the memo, the 200-day EMA has long played an important role in crypto, along with legacy markets. In 2017’s bull market, this measure acted as a line of support on multiple occasions, especially following the so-called “China FUD,” and also as a strong resistance level that pressured BTC lower during 2018’s bear market.
Thus, many have argued that if the leading crypto asset breaks convincingly above that level, further highs would be more than likely.
Leading crypto analysis unit Bitcoin Bravado echoed Survivalism’s astute points. The team took to Twitter to remark that as there is a “lot of confluence” near the aforementioned technical level, there is likely to be major resistance around that level, currently situated right around $4,800. Bravado added that $5,000 will be a psychological level of resistance, especially due to the sum’s round nature.
But, it was tacitly hinted that if BTC breaks the two aforementioned prices points, further highs would make sense.
And while some would say that Bitcoin breaching $5,000 is somewhat of a quixotic dream, analysts argue that it’s possible. Even prior to Sunday/Monday’s sudden buy-side influx, Mitoshi Kaku, a notable technical analyst, noted that he wouldn’t be surprised at all if BTC was to run to $5,000, noting that the “conditions are present” from a chartist standpoint.
I wouldn't be surprise at ALL, if the price goes straight to $5K in the next 10 days. The conditions are present TA-wise. Obviously that sort of move would need a strong catalyzer, but anything is possible when it comes to price action. $BTCpic.twitter.com/Usdpub8LNj