Bitcoin price analysis: BTC/USD gets behind altcoins, as the upside is capped by $6,400
|- Bitcoin gained 1.25% on a daily basis despite the altcoins stellar rise.
- BTC/USD is well supported by $6,300 for the time being.
Bitcoin is trading at $6,330. The digital coin No.1 failed to return to $6,500 handle despite a strong rally of XRP, ETH, and other altcoins, while its market domination dropped from 58% to 5% in a single day. BTC/USD has gained 1.25% on a daily basis and stayed unchanged since the beginning of Wednesday.
While the cryptocurrency segment has been having tough times this year as some coins lost over 80% of their value and Bitcoin shed nearly 55%, crypto experts believe that the market will perform a U-turn pretty soon to end the year on a bright note. Thus, according to Josh Fraser, the co-founder of an open-sourced blockchain platform Origin, the recovery is around the corner as the developments in the technology sector will eventually support the market.
“We’re seeing a shift towards development in the blockchain and crypto space, which is extremely important because some of the key pain points in the space are usability and pricing. People who have written off crypto, as a result, will only be drawn back in when they see real utility, versus speculation. This will help stabilize prices and is why building usable systems is critical,” he said as cited by MarketWatch.
He is not the only guy in town with optimistic forecasts. Earlier we reported that a famous Bitcoin investor Mike Novogratz believed that the market had bottomed out, while Fundstrat's Tom Lee maintains $20,000 target for BTC by the year-end.
Bitcoin's technical picture
From the short-term point of view, BTC/USD is well supported by a confluence of technical levels clustered around $6,300 area (including a host of SMA levels, 23.6% Fibo retracement daily and 23.6% Fibo retracement weekly). Once it is cleared, the sell-off may be extended towards $6,200, where a fresh buying interest is likely to appear.
On the upside, we need to crack $6,400 (SMA200, 1-hour) and $6,430 (SMA100, 1-hour, strengthened by 23.6% Fibo retracement for the downside from $9,500 to the recent low at $6,116.
BTC/USD, 1-hour chart
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