With Bitcoin (BTC) falling below $30,000 for a short time, conditions seem to be forming for a new balance of power among altcoins that have suffered harder losses.
Bitcoin (BTC) price action headed towards a key Wyckoff level on July 6 as it excited about altcoin volatility.
Wyckoff focuses under $36,000
Data from TradingView showed that BTC/USD trading rose 4.6% on Tuesday from the previous day’s lows.
After seeing the $33,000 support tests, buyers multiplied overnight and sent Bitcoin higher. Popular analyst Rekt Capital says the key area to watch is $36,000.
According to Wyckoff analysis, a popular method for charting BTC price action, $36,000 marks the possible end of a “phase C” and the start of a “phase D” for BTC/USD – the trajectory is up.
Alongside the chart it shared, Rekt Capital commented, “BTC drops to ~$33000 area and holds the orange higher bottom perfectly.”
According to the Wyckoff Accumulation Scheme, BTC is currently in the latest phase of Phase C. In order for BTC to enter Phase D, it must exceed $36000.
As Cointelegraph reported, potential higher targets currently include an unfilled CME futures gap above $46,500. It would be a significant move if Bitcoin decisively exits a trading range where it has been sitting for several weeks.
Trader Filbfilb offered a more sober view. He warned sellers, emphasizing that they still control levels that pull the highest volumes to the “checkpoint” or POC.
“The trend remains down,” he summed up on Monday, before the bounce came.
The latest situation in Bitcoin and altcoin relationship
Meanwhile, altcoins could benefit more than Bitcoin in the medium term.
Trader Michaël van de Poppe argued that in an atmosphere where cryptocurrencies are generally “down” rather than going higher, there may be more than just BTC/USD setting a point of interest.
“Most likely the expectation is for altcoins to grind much more heavily than Bitcoin in the coming period,” he told his Twitter followers on Tuesday.
They looked great and disappeared with Bitcoin’s recent drop to $30,000. Therefore, I expect them to continue to outperform #Bitcoin in the coming months.
Some of the top fifty cryptocurrencies by market cap woke up overnight and saw gains in excess of 10%. Ether (ETH), the largest altcoin, traded at $2,340, up 3%. Meanwhile, many DeFi tokens such as SUSHI and AAVE have come to the fore in the last 24 hours, gaining roughly 20%.