Bitcoin topped $31,000 on April 14 as bulls hoped altcoins would soon follow.
BTC/USD 1-hour chart. Source: TradingView
Analysts expect a drop below $30,000
Data from TradingView hit a ten-month high of $31,035.
BTC edged higher the previous day after a period of consolidation surrounding new macroeconomic data from the United States.
These have fueled gains in risky assets, with both the consumer price index (CPI) and producer price inflation (PPI) pointing to a faster-than-expected slowdown in inflation.
While there was no immediate reaction from Bitcoin, the recent bull run has boosted market participants’ confidence in continued strength and a break from the long-term downtrend.
Analyst Michael van de Poppe predicts:
“Bitcoin looks strong, but some minor corrections in the uptrend. I have marked $31.7-32K as key resistance. However, $25K is what everyone wants to buy. This could turn into 28.5K $, and then no one buys it. I’d rather focus on $29,700.”
Source: Michael van de Poppe/Twitter
Van de Poppe has addressed previous concerns about a deeper BTC/USD correction with worrisome price targets including the 200-week moving average around $25,500 or even $22,000.
However, popular trader Crypto Tony recommends that potential long positions be entered until the new support level is confirmed.
“BTC has now broken out of the EQ range of $31,000 and the high range of $32,300.
Source: Crypto Tony/Twitter
“Altcoin season has begun”
However, altcoins are once again in the spotlight, with ethereum taking the lead in Shanghai’s upgrade, aka Shapella.
After hovering below $2,000 the previous day, ETH/USD continued to rise and hit $2,130 – the highest level since May 2022.
1-week ETH chart. Source: TradingView
Not surprisingly, the reaction to the overall strength of the crypto market has been overwhelmingly positive.
“With the BTC bottom forming, the 5th shock is finally confirmed. I believe that many altcoins (though not all) may also bottom,” concluded trader Credible Crypto. “Tokens like ETH and many other altcoins may have bottomed out and started hitting new all-time highs.”
There were plenty of comments about the day’s “altcoin season,” including from former BitMEX CEO Arthur Hayes.
Allow me to reintroduce myself. My name is ALTSZN!!! pic.twitter.com/yIzE7Zxpaw
— Arthur Hayes (@CryptoHayes) April 14, 2023
Financial commentator Tedtalksmacro also declared altcoin season “underway,” noting that the total altcoin market cap has grown by $62 billion in two weeks.
Others have referred to “little altcoin season” and “altcoin 2.0 season” in various ways, arguing that mimicking altcoin returns should follow the initial Bitcoin-led surge.
- Altcoin season, is it near?
- Nine-Year Whale Wakes Up as Dogecoin Searches Surge 1,992% – Dogecoin and ARB Lead Altcoin Season
As reported by Cointelegraph