Bitcoin (BTC) broke through $31,000 on April 14 as bulls hoped that altcoins would soon follow.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Analyst eyes potential dip under $30,000
Data from Cointelegraph Markets Pro and TradingView captured new ten-month highs of $31,035 for BTC/USD on Bitstamp.
The pair had risen gradually the day prior after a consolidatory period around new macroeconomic data prints from the United States.
These had furthered the bullish risk asset narrative, with both the Consumer Price Index (CPI) and Producer Price Inflation (PPI) prints showing inflation slowing faster than expected.
While Bitcoin did not react immediately, the latest uptick reinforced market participants’ convictions over continued strength and a break with the long-term downtrend.
“Bitcoin looks strong, but will have some shallow corrections in an upwards trend,” Michaël van de Poppe, founder and CEO of trading firm Eight forecast on the day.
“I’ve marked $31.7-32K as important resistance point. However, $25K was the level everyone wanted to buy. This will probably shift to $28.5K, and then nobody buys. I’d prefer to focus on $29.7K.”
BTC/USD annotated chart. Source: Michaël van de Poppe/ Twitter
Van de Poppe referenced previous concerns over a deeper correction on BTC/USD, with nervous price targets including the 200-week moving average at around $25,500 and even $22,000.
Related: Best and worst countries for crypto taxes — plus crypto tax tips
Popular trader Crypto Tony nonetheless advised potential long position entries to wait until confirmation of new support levels.
“We have now crossed into the range of $31,000 EQ and $32,300 Range high,” part of the day’s Twitter analysis stated, alongside a chart showing the potential high, low and equilibrium (EQ) level of the new range.
BTC/USD annotated chart. Source: Crypto Tony/ Twitter
“Altseason is underway”
Once again stealing the show, however, were altcoins, led by Ethereum (ETH) after its Shanghai upgrade, also known as Shapella.
Related: Bitcoin’s dominance knocked by ETH’s post-Shapella rally
After teasing a reclaim of $2,000 the day prior, ETH/USD went on to hit $2,130 — its highest levels since May 2022.
ETH/USD 1-week candle chart (Bitstamp). Source: TradingView
Unsurprisingly, reactions were highly complimentary of overall crypto market strength.
“With the $BTC bottom being in and our final 5th impulse confirmed (imo). I believe that the bottom is likely also in on a lot (not all) of alts,” popular trader Credible Crypto summarized, referring to a theory from a recent YouTube video.
“Coins like $ETH and various others have likely seen their lows and have started the journey to new all time highs.”
Credible Crypto acknowledged that it was Bitcoin “in the drivers seat mid-term,” and that it would take a cooling off for BTC price action to stimulate rapid altcoin growth.
That said, sentiment was peppered with references to “altseason” on the day, 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 likewise declared altseason “underway,” noting the total altcoin market cap adding $62 billion in two weeks.
Others variously referenced “mini altseason” and “altseason 2.0,” arguing that copycat gains on altcoins should follow an initial surge led by Bitcoin.
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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Author: William Suberg