Following yesterday’s market surge, Bitcoin has continued to climb and is now looking to target $4,000 as its next point of resistance. Bitcoin’s bullish price action has led to a widespread market surge, with the overall crypto market cap climbing to $125 billion.
At the time of writing, Bitcoin is trading up 7.3% at its current price of $3,820, up significantly from yesterday’s lows of $3,500. Although Bitcoin was able to break through yesterday’s resistance level at $3,600, it appears to have established more resistance in the $3,900 region, as it was swiftly rejected after touching this price region earlier today.
Bitcoin’s positive price action has led the overall cryptocurrency market capitalization up to approximately $125 billion, which is 25% above its recently established 2018 low of $100 billion, which was set last week.
What Analysts Are Saying About Bitcoin Price Action
Although the recent price action has been welcomed by investors, it could be the result of traders closing their high risk sell positions, which results typically results in a relief rally.
While speaking about this theory, Mati Greenspan, the senior market analyst at eToro, said that Bitcoin’s “impressive push from the floor” was the result of short covering, which could mean that the current rally will be fleeting.
“People are looking to reduce their exposure and closing out high risk sell positions before the holidays and this is creating upward pressure on market prices, which is ultimately resulting in a rally,” he said.
Other analysts concur with the belief that the markets aren’t out of the woods yet, with Michael Moro, the CEO of Genesis Global Trading, telling CNBC that Bitcoin needs to hold above the $3,900 level before buyers really step in and drive the markets up.
“Buyers typically need to see prices holding for a few days before they really step in, and I think $3,900 is a key short-term level here before that really happens,” Moro said.
Altcoins Surge Amidst Bitcoin Rally
Bitcoin’s upwards momentum has led to a widespread market rally that has sent many altcoins up 10% or more.
Today’s best performing major altcoin is Bitcoin Cash, which is currently trading up over 33% at its current price of $131.2. Bitcoin Cash is now trading at its highest price over the past one-week trading period and is trading significantly off its recently established all-time-low, which was set last week at $75.
At the time of writing, XRP is trading up nearly 12% at its current price of $0.374. XRP found support in the $0.28 region and is current trading up significantly from its 2018 low, which was set in August around $0.25.
Ethereum is trading up 11% at its current price of $105. Last week, Ethereum set a fresh 2018 low at $82, and it is currently trading nearly 30% above this price.