The rally has come days after the top altcoins by market cap has closed above a crucial multi-year declining trendline. Just hours after the close, Bitcoin gained momentum and jumped above the psychological resistance level of $10,000.
Analysts now anticipate traders to look at $10,500 levels. If this level is breached, then traders can look for $11,000, $14,000 and maybe even $16,000.
The outlook is exciting for bulls, but it is better to remember that Bitcoin has already gained 12.76%, after rallying from $9,142 on July 21 and the price is yet to retest the technical support at $9,450.
Notably, there is also a CME price gap at $9.615, which remains to be filled. The market gives a lot of importance to CME gaps. Therefore, any reversal below $9,800 increases the chances of seeing the gap filled.
The previous two rallies above $10,000 was accompanied by a surge in volume, implying traders should have a watch on buy and sell volume on the one and four-hour time frame to ascertain whether the present price move can sustain upward momentum.
In case of a retracement, traders will possibly look for a retest of the $10,100 zone and a vigorous retracement could result in a decline to a range of $9,800 to $9,900 where the price may stabilize.
Interestingly, the price of Ether (ETH) has also jumped in tandem with Bitcoin. At the time of writing this article, Ether (ETH) was trading at $325.13, representing a gain of 5.2% in the past 24 hours.
If Ether is able to consolidate at the current levels, then traders will be looking at $367, recorded on June 26. However, it should be noted that the altcoin has gained 40% since July 21.
Therefore, there is a high chance of profit booking at current levels, leading to a price correction. As Bitcoin’s price rallied higher, several top altcoins recorded marginal price gains.
Crypto.com Coin (CRO) gained 5.61%, while Monero (XMR) appreciated 3.53%. Likewise, Bitcoin SV (BSV) appreciated 2.18%.
As a whole, the marketcap of crypto market currently stands at $313.68 billion, with Bitcoin’s dominance index at 61.4%.