Cryptocurrencies, including Bitcoin, experienced an upswing on Monday as the recent bullish trend in the crypto market extended through the weekend. The prospect of a potential approval for a spot Bitcoin exchange-traded fund (ETF) in the United States added to the positive momentum, resulting in interest from investors.
Bitcoin maintained its upward trajectory, climbing over 3% and hovering around the $31,000 mark. Meanwhile, Ethereum also recorded a similar gain with a more than 3% increase, approaching the $1,700 level. Many other altcoins also saw gains.
According to analyst Rekt Capital, breaking past the critical resistance level of approximately $31,000 is the last step in negating a bearish Bitcoin pattern. Should it reclaim this level as support or achieve a weekly close above it, this would likely confirm a breakout from the current trading range.
However, until that happens, there remains a possibility of a pullback to around the $27,000 level. It’s interesting to note that, historically, Bitcoin retraced around -25% in 2015 and -38% in 2019 during similar points in its market cycle, less than 190 days before the Halving event.
Crypto Tony, another market analyst, highlighted the cyclical nature of the cryptocurrency market, noting that Bitcoin tends to lead the way with liquidity moving in its direction. This explains the drop in the Ethereum-to-Bitcoin ratio as investors divert their funds towards Bitcoin.
Regarding Ethereum, he stressed the significance of breaking above the $1,745 price level. In terms of Bitcoin, he expects a level of resistance and a minor pullback at around the range highs of $31,500. This point is where bears may challenge the bullish momentum.
He also updated Chainlink and wrote, “Now we are in a great position since my first share of LINK, and now we look to the next few months. Breaking this range was the first step for the bulls, and now they need to consolidate above and retest. This would be healthy to see.”
