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Watch These Key Technical Levels As Bitcoin Price Approaches All-Time High

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The price of Bitcoin (BTC) topped $ 61,000 on April 10 for the first time in nearly a month. After the breakout, traders start to look at new levels of resistance and short-term support as optimism returns to the market.

In the short term, aside from the all-time high of around $ 61,800, there are three key Bitcoin price points to watch: $ 61,188, $ 58,387, and $ 53,000.

Heat map of BTC_USDT (Binance) order book. Source: Material indicators

As long as the price of Bitcoin stays above $ 58,387 and continues to try to break above $ 61,188, it will likely hit a new high for the foreseeable future.

If Bitcoin hits a new high, traders also expect the altcoin market to pull back slightly for now, at least until BTC begins to stagnate after hitting a new high.

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$ 58,000 back to support is essential for more benefits

According to alias trader “Rekt Capital”, the key to getting Bitcoin to hit a new all-time high in the next few days is to consolidate $ 58,000 as a support area.

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The $ 58,000 level is an important area as it marks the top of BTC’s initial rally towards the resistance level of $ 60,000 in mid-February, as seen in the chart below.

1 day BTC / USD price chart (Coinbase). Source: Rekt Capital, TradingView.com

In technical analysis, when the price of an asset stabilizes above the previous peak, it is considered a very bullish sign.

The merchant Noted:

“BTC was able to keep the red zone even though it rejected the orange And in fact the releases from the orange have been lower Right now, BTC is pushing beyond the orange [$58,000]. Turning orange into support would bring Bitcoin closer to a new all-time high. “

Raoul Pal, CEO of Global Macro Investor, stressed that Bitcoin’s macroeconomic view remains positive.

READ  ETH / BTC bullish pair reignites Ethereum 'turnaround' discussion

Pal pointed out that Bitcoin has moved out of a three-month range, indicating that BTC’s technical momentum is starting to pick up strength. He mentionned:

“It’s a bit of a big deal to see BTC break a 3-month range and a wedge. It should create a powerful upward movement. (The axis nibbled on the chart to hint to the upside for dramatic effect. . “

A “Cactus” cryptocurrency derivatives trader also added that on-chain analyzes are stronger than ever, as large outflows of BTC currencies indicate a build-up among high net worth investors.

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As Bitcoin rallies, beware of altcoin stagnation

Meanwhile, other traders expect the altcoin market to take a break if Bitcoin enters price discovery again.

READ  r / Wallstreetbets Rebans Crypto Talks Following Bloomberg Article

Kaleo, a well-known pseudonym trader, said there is a good chance that altcoins will not rally as much as expected when volume is absorbed by Bitcoin.

The merchant Explain:

“For those who are new, be careful being deep in the alts when $ BTC is on the verge of price discovery. Profits from alts tend to flow back into Bitcoin. This does not mean that the USD price will not rise. , just that there’s a good chance it won’t increase that much. “

In the short term, Bitcoin would likely outperform altcoins if it continues to rally, and momentum will only shift to altcoins once BTC consolidates, as it will find a new range after breaking new highs.