Bitcoin (BTC), the leading cryptocurrency, is currently facing a crucial hurdle that needs to be overcome for further growth. Analyst Michael van de Poppe has highlighted this challenge and provided a concise yet impactful assessment. According to van de Poppe, there is a significant level of resistance that must be breached in order for a major upward trend to commence. Let’s delve into the analyst’s insights.
Van de Poppe points to resistance, which is essentially a price level where strong selling pressure hinders further price appreciation. To put it simply, imagine a price chart with a $70,000 barrier. Many investors are likely waiting to sell their Bitcoin holdings at this price, acting as an obstacle for the price to surpass it. This is the critical level that analyst van de Poppe draws attention to.
As we witnessed recently, Bitcoin made an attempt to break this $70,000 resistance level but was unsuccessful. This failed test indicates that there could be a substantial number of sellers waiting at this price point. However, it is not an insurmountable barrier.
If Bitcoin can decisively break through this resistance and maintain a price above $70,000, it could be interpreted as a significant bullish signal. A bullish signal implies an expectation of price appreciation. By surpassing $70,000, Bitcoin could signal to investors that the overall sentiment is positive, potentially leading to increased buying activity and further price gains. This positive momentum can also spill over to other cryptocurrencies, known as altcoins.
Altcoins, which are cryptocurrencies other than Bitcoin, often follow Bitcoin’s trends in terms of price movements. Therefore, if Bitcoin, as the dominant cryptocurrency, surpasses $70,000 and enters a bullish phase, it could trigger a similar surge in the value of many altcoins. This scenario would inevitably create an altcoin season, leaving investors pleased with their investment decisions. At the time of writing, BTC was valued at $68,776.
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Disclaimer: The information provided in this article should not be considered as investment advice. Investors should be aware of the high volatility and associated risks of cryptocurrencies and should conduct their own research.