Bitcoin (BTC) broke above $31,000 on April 14, as bulls hoped that altcoins would soon follow suit.
Analysts eye a possible drop below $30,000
Data from Cointelegraph Markets Pro and TradingView captured fresh 10-month highs of $31,035 for BTC/USD on Bitstamp.
The pair had gradually rallied the previous day after a period of consolidation around new US macro data.
Data from the Consumer Price Index (CPI) and Producer Price Inflation (PPI) showed a faster-than-expected slowdown in inflation.
Although Bitcoin did not react immediately, the latest rally reinforced market participants’ convictions about continued strength and breaking the long-term downtrend.
“Bitcoin looks strong, but will have some superficial corrections in an uptrend”, forecast that day Michaël van de Poppe, founder and CEO of the trading firm; Eight.
“I have marked the $31,700-32,000 range as a major resistance point. However, $25,000 was the level that everyone wanted to buy. This probably goes to $28,500, and then no one will buy. I prefer to focus on $29,700.”
Van de Poppe addressed earlier concerns about a deeper correction for BTC/USD, with jittery price targets including the 200-week moving average around $25,500 and even the $22,000 mark.
However, popular Crypto trader Tony advised potential buyers to wait for confirmation of new support levels.
“We have now crossed the breakeven level of the $31,000 range and with a possible high of $32,300”, He said part of the day’s analysis on Twitter, along with a chart showing the possible high, low, and equilibrium level (EQ) of the new range.
“The altseason is on”
However, once again it was the altcoins that got all the attention, led by Ether (ETH) following the implementation of its “Shapella” update.
After flirting with retrieving the $2,000 mark the previous day, the ETH/USD pair reached $2,130, its highest level since May 2022.
Unsurprisingly, the reactions were very favorable to the general strength of the cryptocurrency market.
“With the BTC bottom and our final 5th push confirmed (in my opinion). I think the bottom is likely on a lot (not all) of the alts as well,” summarized popular trader Credible Crypto, referring to a theory in a recent YouTube video.
“Coins like ETH and several others have probably bottomed out and started the journey to new all-time highs.”
Credible Crypto acknowledged that Bitcoin was “in the driver’s seat for the medium term,” and that it would take a cooldown in price action to spur rapid growth among altcoins.
That being said, the sentiment was peppered with references to the “altseason” on the day, including from former BitMEX CEO Arthur Hayes.
Allow me to reintroduce myself. My name is ALTSZN!!! pic.twitter.com/yIzE7Zxpaw
— Arthur Hayes (@CryptoHayes) April 14, 2023
Financial commentator Tedtalksmacro also stated that the altseason was “on,” noting that the total altcoin market capitalization had risen $62 billion in two weeks.
Others will referred to “mini altseason” and “altseason 2.0”, arguing that altcoin-imitated gains should follow an initial surge led by Bitcoin.
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