Bitcoin and the aggregated crypto market have seen some mixed price action over the past few days, with major digital assets showing signs of weakness while smaller market cap altcoins continue seeing bullish price action.
Both BTC and ETH did place some pressure on the entire market overnight, sparking a retrace amongst most altcoins.
That being said, the benchmark cryptocurrency is now showing some signs of strength as it holds above a crucial support level.
One analyst believes that its ability to hold above this level could be enough to propel the entire market significantly higher.
He notes that $11,500 is the key region to watch in the near-term, as holding above this level could provide smaller altcoins with massive momentum in the coming days.
Bitcoin Shows Signs of Strength as Market Consolidates
At the time of writing, Bitcoin is trading up marginally at its current price of $11,570. This is around where it has been consolidating at ever since bulls defended against a break below $11,500.
The decline seen by the cryptocurrency overnight briefly led it to lows of $11,400, but this level was ardently defended by bulls.
Their inability to break below this bedrock support shows that the lower-$11,000 region is a strong support level for the cryptocurrency, which may mean that it is poised to see further near-term upside.
Furthermore, the crypto is now trading above its previous support at $11,500, with buyers’ ability to reclaim this level suggesting that it is poised to see further upside in the near-term.
If BTC can continue holding above this level, it will likely consolidate for a short period as it attempts to garner enough support to break above its resistance at $12,000.
Analyst: Altcoins Likely to Rally as BTC Holds Key Support
While speaking about Bitcoin’s current outlook, one analyst explained that he believes its ability to hold above $11,500 will allow altcoins to bounce and potentially further extend their intense momentum.
His chart does reveal that a break below this level could lead BTC to decline to as low as $9,900 in the days and weeks ahead.
“Well, on the daily timeframe we’ve arrived at the crucial level to hold for further upwards momentum. Bearish divergence only gets confirmed if we lose this $11,500 zone. Holding here = bounces on altcoins. In general still altseason and alts continue.”
Image Courtesy of Crypto Michaēl. Chart via TradingView.
Bitcoin’s price action will likely be the primary factor that determines how altcoins trend in the days and weeks ahead.
Featured image from Shutterstock. Charts from TradingView.