Bitcoin pumps, altcoins dump: More pain for alts, BTC to $6500, say traders

24 Apr, 2019 | Updated: 24 Apr, 2019
by Will Heasman
Price Analysis
Bitcoin pumps, altcoins dump: More pain for alts, BTC to $6500, say traders

While Bitcoin looks to be sitting pretty above previous resistance altcoins can look forward to a little more anguish as they suffer from Bitcoins latest pump. So what's next for the #1?

Bitcoin’s successful pump through resistance around $5350 was said to have been due to the formation of a golden cross, a technical chart pattern in which a short term moving average (MA) crosses above its long term MA. Typically, an event which is indicative of a major price hike.

While we didn’t get above $6K as many had hoped, the crossover appeared to give BTC a much-needed shove in the right direction, however, as a result of this sharp increase, altcoins suffered, pretty hard.

Chart provided by Tradingview

Most alts today are showing signs of retracement, down -5 to -8% across the board in the past 24 hours.

Meanwhile, BTC has remained above previous resistance currently citing a price just above $5500. So what’s next?

It appears to be a mixed bag with many analyst believe that as BTC progresses in the right direction we’re likely to see more pain for altcoins.

One cited an increase in BTC dominance, as a another reason for continued altcoin pain:

If you’re looking to drown out the screams of altcooin holders, our next trader has the perfect melody; singing to the tune of a long term Bitcoin bottom, a potentially healthy correction, and the start of a bull run.

The analyst relayed that the daily relative strength index – which measures the strength or weakness of an asset based on its daily closing prices – is at levels not seen in a bear cycle, indicating that bull season has officially started.

Another similarly bullish analyst points to both the formation of the golden cross as well as historical similarities depicted in the 2015 markets as a clear indicator of a bull run setting various targets leading to $6500 at the start of May:

However, not everyone is convinced that BTC will easily stride past $6k, with one trader suggesting that support turned resistance around $5800-$6000 will prove difficult to surmount:

So, for now, it seems as thought alts may continue to bleed out a little while Bitcoin decides its next move, which could very well be up. However, if history is anything to go by altcoins will soon have their moment in the sun.

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