Bitcoin has once again been able to reclaim its position above $4,000 after briefly dipping into the $3,900 region earlier this week. Today’s move places BTC back into its previously established trading range between approximately $4,000 and $4,100.
Although today’s upwards move is certainly positive, the cryptocurrency has still been unable to surge past $4,100, which will likely continue to be a level of resistance for the foreseeable future.
Bitcoin (BTC) Breaks Back Above $4,000
At the time of writing, Bitcoin is trading up nearly 2.5% at its current price of $4,065. Today’s upwards price surge has allowed the general crypto markets to surge, with EOS skyrocketing over 15%, and Litecoin climbing nearly 5%.
Although the persisting bear market – which has been dubbed the “crypto winter” by analysts and traders – is likely far from over, it is important to note that BTC has been able to stay well above its 2018 lows in the low-$3,000, which may signal that this region is a long-term bottom.
Mati Greenspan, the senior market analyst at eToro, spoke to MarketWatch about the current state of the markets, offering a cautiously bullish tone about what he expects to come next for the nascent markets.
“We can’t go from [crypto] winter to summer in a few days, probably not even in a few weeks. Spring is generally a time of volatility where hot and cold often surprise us. Though bitcoin has yet to snap the bear market, I do believe that crypto winter is now over and we are entering spring,” Greenspan explained.
Although the latest move up may give bulls a small reason to be excited, in late-February Bitcoin swiftly pushed up to $4,200 before spiraling downwards, which signaled that this price is a strong resistance level.
After Holding Support, BTC May Be Ready to Push Higher
Today’s positive price action may be a glimpse of what’s coming in the near future.
UB, a popular cryptocurrency trader on Twitter, explained in a recent tweet that he is looking to enter a BTC long position after it revisits its equilibrium (EQ) level in the mid-$3,900 region, which could spark another upwards push towards $4,140.
“$BTC – The Range Low held as support for 7 days before it failed. Bitcoin reclaimed the Range Low in 1 day without running into any resistance at the RL. I’m interested in entering into a long position on a retest of the EQ + POC. Areas of Interest: – $4140 – $3950,” he explained.
$BTC – The Range Low held as support for 7 days before it failed.
Bitcoin reclaimed the Range Low in 1 day without running into any resistance at the RL.
I’m interested in entering into a long position on a retest of the EQ + POC.
Areas of Interest:
– $4140
– $3950#Bitcoin pic.twitter.com/UxaV4iqoZB— UB (@CryptoUB) March 27, 2019
As the crypto markets enter the second half of the week, analysts and traders alike will discover whether or not BTC will once again get caught in its previous trading range between $4,000 and $4,100, or if it will climb higher and establish fresh trading ranges.
Featured image from Shutterstock.