Bitcoin (BTC) finally surged through the $3,900 level on Friday night and rallied as high as $4,040, before declining to $3,930 on Saturday night. Bitcoin (BTC) then retested the $4,000 level, rising to $4,015 on Sunday night before sliding back to $3,930 early this morning. Currently Bitcoin (BTC) is trading near $3,975.
Just like there was hard resistance at $3,900, it appears there is resistance at $4,000. This resistance level will have to break for Bitcoin (BTC) to get to the long term resistance level of $4,200.
The new support level for Bitcoin (BTC) is $3,900, followed by support at $3,700 and the long term support level of $3,100. The level to watch is $3,700, since if Bitcoin (BTC) plunges through this support level then it will be at risk of retesting bear market lows.
The crypto market surged when Bitcoin (BTC) finally pushed through the $3,900 resistance level over the weekend. The total crypto market cap reached as high as $141.5 billion, up $10 billion since March 12 and up $30 billion since early February. Indeed, the crypto market has been generally rising for the last month and a half, which may indicate that a bottom is forming in this bear market.
Since Bitcoin (BTC) has declined after reaching $4,000 around midnight, most cryptocurrencies are in the red today. Ethereum (ETH) is down 0.8 percent, Ripple (XRP) is down 0.5 percent, Litecoin (LTC) is down 1.9 percent, EOS is down 1.2 percent, Binance Coin (BNB) is down 1.3 percent, Tron (TRX) is down 1.4 percent, Cardano (ADA) is down 0.3 percent, Bitcoin SV (BSV) is down 2.3 percent, Monero (XMR) is down 0.2 percent, IOTA (MIOTA) is down 1.4 percent, and Dash (DASH) is down 0.9 percent.
That being said, a few cryptocurrencies have managed to gain today. Bitcoin Cash (BCH) is up 2.2 percent, Stellar (XLM) is up 5.8 percent, and Dogecoin (DOGE) is up 0.4 percent. Stellar (XLM) has retaken the number 7 spot on CoinMarketCap, pushing Binance Coin (BNB) down to number 8. Today’s rally has been fueled by Stellar (XLM) being listed on Coinbase, following its listing on Coinbase Pro last week.
Due to Bitcoin’s (BTC) pullback from the $4,000 level and other cryptocurrencies following Bitcoin (BTC) into the red today, the total crypto market cap has dropped to $140 billion. This is well above the bear market low of $100 billion in mid-December though, and things are looking more optimistic in recent weeks as the total crypto market cap has on average been gaining.
All eyes are on Bitcoin’s (BTC) $4,200 level since, if that resistance level breaks, a significant crypto rally could be in store.