- Bitcoin has closed the week above a key resistance level, suggesting more upside is on the way
- The $45,000 level has finally been cracked after multiple attempts this year
- Alts are facing resistance following weeks of upside
Bitcoin is looking well placed for further gains after a strong weekly close confirmed that a major area of resistance has now been turned into support. Having finally crossed $45,000 last week, Bitcoin closed above it to suggest that the two-month resistance area has been broken. This has occurred at the same time as alts are facing key resistance levels following a big alt rally, suggesting that the tide may be turning back in Bitcoin’s favor.
$45,000 Toppled at Last for Bitcoin
As we reported last week, Bitcoin’s move up through the prior resistance of $45,000 was a crucial area that it needed to pass, with the retest of that level being the litmus test for its medium-term strength. Despite a brief drop below it, Bitcoin closed the week having confidently reclaimed this level:
This is a very bullish close to the week, with strong parallels to last summer’s rally:
We can also see that the past few weeks of price action have seen Bitcoin break through the downward trend line that has been in place since the November all time high:
Bitcoin is therefore looking very strong, and, barring any unforeseen negativity in a fundamental sense, should be looking at further gains this month.
Alts Could Take a Temporary Hit
Alts on the other hand might be set for a bit of a pullback following three-digit gains for many of them in the last month or so. We can assume this from a look at the ETH/BTC chart:
Ethereum has been in an uptrend against Bitcoin since the July 2021 bounce, with March’s performance in particular with eight out of the last nine 3-day blocks being green. This has been reflected in the performance of many alts, but with a tough resistance area now being entered, the time may have come to be cautious on alts as they potentially reset against Bitcoin.
Those who subscribe to the theory that Bitcoin’s dominance will continue to cede to alts will be looking for the following price action to confirm their bias, and usher in a mammoth alt season:
It is no surprise that many individual alts are facing their own areas of resistance right now, and only time will tell how strong the alt market continues to be after a big rally already.
