Bitcoin
Here’s How Bitcoin Could Spark a Massive Move Higher for Smaller Altcoins
Cole Petersen | Dec 01, 2020 | 23:00
- Bitcoin has seen some wild price action throughout the past few days and weeks, with the selling pressure seen at its all-time highs sparking multiple rejections
- Neither of the rejections seen at this level have done much to change the crypto’s trend, as it continues pushing higher each time
- Where the entire market trends next will depend largely on whether or not BTC can stabilize within the lower-$19,000 region
- Each visit to its highs degrades the resistance existing here, meaning that it may only be a matter of time before it is broken above
- One trader is noting that, if history rhymes, Bitcoin breaking above its all-time highs could be all that is needed for smaller crypto-assets to see massive upside
Bitcoin has been guiding the entire market throughout the past few days and weeks, which has subjected altcoins to immense volatility.
Yesterday morning, BTC rallied as high as $19,800, which marked an all-time high on some exchanges.
Despite being a historic moment, bears still tried to fade the move and sparked a strong rejection at this level. This led BTC down to lows of $18,200 before it found some strong momentum and rallied significantly higher.
It is now back within the lower-$19,000 region and looking strong, meaning that this may have once again been another bear-trap.
One trader expects a break above Bitcoin’s all-time highs to spark a serious upside movement for altcoins.
Bitcoin Rallies from Lows, Creates Tailwind for Altcoins
At the time of writing, Bitcoin is trading down just under 2%.
This marks a decline from its recent highs of $19,800 that were set yesterday and marks a notable surge from lows of $18,200 set just a few hours ago.
The potent reaction to this selloff does seem to indicate that upside is imminent for the cryptocurrency.
Trader: BTC Breaking Its All-Time Highs Could Catapult Altcoins Higher
This recent BTC turbulence has had massive impacts on the price action seen by altcoins.
One trader is now noting that a break above Bitcoin’s all-time high is a historically bullish event for altcoins, despite a common narrative that suggests BTC entering price-discovery could hamper the growth seen by its smaller counterparts.
“In last 2 cycles, alts rallied extremely hard each time BTC broke its old high, will it be the same again?”
Image Courtesy of CL. Source: TradingView.
Assuming that history rhymes, as it so often does, this means that the next few days could be massive for the future of altcoins, as Bitcoin is once again just a stone’s throw away from fresh all-time highs.
Featured image from Unsplash. Charts from TradingView.
