$5,600 In Reach As BTC Ticks Higher: Will The Rally Continue?

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bitcoin to 6000?

Around the past couple of hours, Bitcoin (BTC) and its altcoin brethren have begun to calmly rally. As of the time of writing, BTC is up 3.5% in the past 24 hours, finding itself trading for $5,240 apiece, basing on to data collected by Coin Market Cap.

This step isn’t as notable as early-April’s 15% daily gain, which saw retail and institutional trading activity ignite as BTC moved past two key resistance levels, $4,200 and $4,600. On the other hand, the recent influx of buying pressure comes after cryptocurrencies experienced a rapid 10% sell-off over the weekend, making sure that bears don’t get a fighting chance to follow through.

If Bitcoin Breaches $5,600, $6,000 May Be In Store

According to a recent chart from Credible Crypto, with Tuesday’s move, BTC is positioned to in the near future break out of a triangle pattern, which has depreciated the asset and reduced trading activity over recent days. In the event that the upper bound of the triangle breaks as Credible expects, Bitcoin could rally past its year-to-date high at $5,500, moving to and beyond $5,600 as a local resistance level is broken.

Even though a move past important $5,600 doesn’t seem outstanding, especially taking into consideration that Bitcoin’s monthly high is just $100 below that, analyzers dispute that a raid above the mid $5,000 s will be huge for bulls. In reality, as a popular trader, The Crypto Dog, illustrated in a chart posted hours ago, not only might a rally to $5,600 break a flat top triangle, but it would put BTC in an area of low liquidity.

Any semblance of buying pressure seen in that region could catapult Bitcoin to $6,000. As the analyst writes: “$5,600 is the only thing standing between us and $6,000.”

Charts Looking Bullish

Certainly, $5,600 might be rejected, nevertheless a bunch of chartists are relentless that from a macro perspective, BTC is still looking hot. As trader B.Biddles pointed out, Bitcoin’s one-week chart from August to now impeccably bears resemblance to a “bump-and-run reversal bottom” (BARR Bottom) shown in a notable technical analysis book.

If the BARR Bottom trend plays out as the textbook’s author, Thomas Bulkowski, describes, BTC will quickly see an “uphill run” that will catapult cryptocurrencies into their next bull run.

Basic factors, too, are presenting BTC and other digital assets a seal of approval to head higher. As Cumberland, a crypto-friendly arm of DRW, noted on Twitter, as reserve banks have prolonged interest rate hikes, risk assets, like Bitcoin, have rallied. With institutions like the Federal Reserve and European Central Bank seeking to carry on this trend, this “risk-on” rally could comfortably continue.

Should Declining Crypto Trading Activity Be A Worry?

Analysts are leaning bullish en-masse, but throughout recent trading sessions, the degree of trading activity has begun to taper off. As a matter of fact, the 24-hour volume registered by Coin Market Cap has decreased to $42 billion, which is almost half that registered on April 3rd to 7th, the aftermath of April 2nd’s bullish breakout.

It is important to note that this data provider’s figures are largely deemed inflated, yet Bitwise’s Bitcoin volume index, which takes only regulated exchanges into account, has accentuated that trading is on the downslide.

Should this be a problem for bulls though?

In the eyes of some chartists, yes. But if we take Biddles’ analysis into consideration, falling volumes could signal bullishness. Weird, huh. As the Bitcoin trader explains, “declining volume is bullish in this pattern (ascending triangle),” and signals that a rapid move higher is likely in BTC’s cards.

Featured Image from Shutterstock

The post Bitcoin Traders Eye $5,600 As BTC Suddenly Ticks Higher: Can The Rally Continue? appeared first on NewsBTC.

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