Bitcoin on a Knife Edge as $4,500 Looms

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Bitcoin endured a volatile weekend and failed to end the week over $5,300, bringing with it suggestions that the current resistance is too strong and a fall to the mid $4000s could on the cards. This seems to have put alt season on hold for the time being while Bitcoin makes up its mind on its next move, with the weekly rejection bringing the bears back out to play again.

Bitcoin’s Balancing Act

Saturday saw some more positive momentum following last week’s crazy price action, as BTC put on another $200 before a sharp drop threatened to undo much of its recent good work. The bulls stepped in however and halted the sell-off after only $300, with the price wicking down to the $4,900 area before rebounding back up to where it had been prior to the sell-off, a positive reaction compared to other sell-offs we’ve seen in the last fifteen months.

Sunday saw the recovery turn into a gain and the price top out at $5,300 in the early hours of Monday. Although this turned the weekend into a net positive, some are preaching caution that the current price level cannot be sustained:

Some decided to engage in a spot of bear baiting and focused on the potential upside instead, reflecting the delicacy of the current situation:

Alts Wait on the Sidelines

Altcoins spent the weekend hiding from BTC as it went about its business, with no significant moves over the period. Happily, however, there were no ultra-negative reactions to Bitcoin’s flash sale late Saturday, with most keeping a healthy price versus BTC as Bitcoin fell and rebounded. Past price drops from BTC have seen alts tumble extremely quickly in tandem, so the fact that they held their ground shows fewer people panic selling, reinforcing the idea that there is more faith in the market at the moment.

Current indicators suggest that there is still at least a partial alt season ahead of us, so it makes sense to have a portfolio including alts and BTC right now, but having a little fiat on the side to buy any dip would seem to be a good hedging position as we wait to see what Bitcoin has in store for us this week.