They say that a rising tide lifts all boats, and this saying is especially true within the crypto markets, with Bitcoin being the tide and the various major altcoins being the boats that tend the follow its lead.
Bitcoin’s recent surge from lows of $6,800 has revitalized the markets, allowing multiple altcoins to post decent recoveries from their recent lows, and one analyst is now noting that many crypto’s ability to surge concurrently with BTC is a bullish sign.
Bitcoin’s Momentum Creates Bullish Tailwinds for Crypto Markets
At the time of writing, Bitcoin is currently trading up over 2% at its of $7,500, which marks a slight climb from its daily lows of $7,300, and a notable climb from its recent lows of $6,800.
It is imperative to note that this rally has not come about at the expense of other cryptocurrencies, as many major altcoins have similarly been able to put some significant distance between their current prices and their recent lows.
Ethereum is one such altcoin that has climbed significantly from its recent lows of $126, as it is now trading at nearly $140. Litecoin has also been able to surge, jumping from weekly lows of $39 to highs of $45.
Because the markets are tracking Bitcoin – for both better and worse – it does appear that all eyes are closely watching to see where BTC goes next, and one analyst thinks the next move could greatly favor bulls.
“$BTC People are gonna call inverse head and shoulders on this one. That makes me think we go and test the neckline (upper red line). Once there I think we either fake-breakout and dump back down or breakout for real which will lead to a short-squeeze. I remain bullish,” DonAlt, a popular crypto analyst on Twitter, explained in a recent tweet.
People are gonna call inverse head and shoulders on this one.
That makes me think we go and test the neckline (upper red line).
Once there I think we either fake-breakout and dump back down or breakout for real which will lead to a short-squeeze.I remain bullish.
— DonAlt (@CryptoDonAlt)
Will the Ongoing Altcoin Rally Falter, Or Continue Strong?
DonAlt also shared his thoughts on the state of the general crypto market in a tweet from a couple of days ago, explaining that the fact that altcoins have been able to climb in tandem with Bitcoin may signal that this recent rally has some long-term significance.
“Pumps like this are usually not significant but considering that this happened to multiple big alts WHILE BTC was also going up is something I find significant. We’ll have to wait for some ranges to get reclaimed to be reasonably sure but the initial step sure looks nice,” he explained while pointing to the chart seen below.
Pumps like this are usually not significant but considering that this happened to multiple big alts WHILE BTC was also going up is something I find significant.
We'll have to wait for some ranges to get reclaimed to be reasonably sure but the initial step sure looks nice.
— DonAlt (@CryptoDonAlt)
How the crypto markets trend in the coming few days could offer deeper insight into how they will trend throughout the first half of the new year.
Featured image from Shutterstock.