Bitcoin (BTC) has finally punched through the stubborn $4,000 resistance level after battling with this resistance level for two weeks. During the early morning hours before sunrise, Bitcoin (BTC) rallied from $4,000 to $4,100. Around 6 a.m. the price was moving up rapidly, and this was likely a short squeeze.
By the late morning, Bitcoin (BTC) declined to as low as $4,065 before surging again to near $4,100 in the afternoon. Then, Bitcoin (BTC) was pushed back a bit and is currently trading near $4,080.
Based on today’s trading data, it appears there is resistance at the $4,100 level, and this resistance likely extends all the way up through the long-term resistance level of $4,200. This resistance level will likely be just as stubborn as the $3,900 and $4,000 resistance levels, and it might take some time to punch through them. It will probably take a big short squeeze to wipe out the resistance at these levels.
If Bitcoin (BTC) can get through $4,200, the crypto market would be poised to have a major rally.
Despite Bitcoin (BTC) finally getting through the $4,000 resistance level, which should have been enough to cause a bullish day on the crypto market. The crypto market is instead mixed. The total crypto market cap declined from $143.5 billion to $141.5 billion during the early morning hours, indicating that major cryptocurrencies crashed during this time. When Bitcoin (BTC) broke through $4,000, it brought the total crypto market cap back up to $143.5 billion, recovering most of the losses but not enough to spark a rally throughout the crypto space.
Cardano (ADA) is the big winner of the day with a 6.9 percent gain. This continues a strong week for Cardano (ADA), and now Cardano (ADA) is ranked number 10 on CoinMarketCap. Other cryptocurrencies which have gained today are Ethereum (ETH), which is up 1.1 percent, Litecoin (LTC) which is up 0.3 percent, Bitcoin Cash (BCH), which is up 0.1 percent, Stellar (XLM), which is up 0.6 percent, IOTA (MIOTA), which is up 1 percent, Dash (DASH), which is up 1.2 percent, and Dogecoin (DOGE), which is up 0.4 percent.
Cryptocurrencies that saw losses today include Ripple (XRP) which is down 0.6 percent, EOS, which, is down 0.3 percent, Binance Coin (BNB), which is down 1.5 percent, Tron (TRX), which is down 0.8 percent, Bitcoin SV (BSV), which is down 0.6 percent, and Monero (XMR), which is down 1.5 percent.
Overall, today was a major victory for the crypto market since Bitcoin (BTC) has finally defeated the $4,000 resistance level. All eyes now turn towards $4,200, though, since the battle at this resistance level will determine whether the crypto market goes on a bull run or retreats back to the bear cave.
One positive factor is that the CME Bitcoin futures expiration happened today, which levels the playing field and brings hope that futures traders could go long this month. The market momentum has certainly been upwards since early February, with the Bitcoin (BTC) 30-day exponential moving average (EMA) rising for the first time since the November crash. This may be a time when futures traders can make big profits by going long, rather than going short and trying to battle the strong buying pressure in place.