The Surge In Bitcoin To $70K Presents A Positive Trajectory For Altcoins

Altcoin charts such as OP, TAO, STX, and MNT are displaying bullish signals while Bitcoin endeavors to reclaim the $70,000 threshold.

Source: www.kryptomoney.com

Bitcoin has sustained its upward momentum this week, indicating a reluctance among traders to cash in profits as its price approaches the $70,000 mark. The count of Bitcoin whales, denoting unique addresses holding over 1,000 Bitcoin, has surged to 2,104 as of March 7, suggesting their anticipation of the ongoing uptrend.

The bullish movement in Bitcoin has positively influenced market sentiment across the cryptocurrency sector. According to data from DefiLlama, the total value locked (TVL) in decentralized finance (DeFi) protocols has surpassed $100 billion for the first time in approximately two years. Nonetheless, this TVL remains significantly lower than the record high of $189 billion achieved in November 2021, despite the recent surge. In a bullish market, traders often disregard caution and eagerly pursue higher prices. However, this behavior typically leads to unfavorable outcomes in the end.

Analysis Of The Price Of Bitcoin

The bears are attempting to halt Bitcoin's ascent around the $70,000 mark, but a promising indication is that the bulls haven't surrendered significant territory. This implies that every slight decline is being met with buying activity. Bulls are expected to push for a continuation of the uptrend by driving the price above $70,000 in the BTC/USDT pair. If successful, momentum could build up, potentially propelling the price to $76,000. While this level may present a minor obstacle, surpassing it could pave the way for a rally towards $80,000.

If the bears attempt to regain control, they would need to aggressively sell, pushing the price below the 20-day exponential moving average ($61,422). This action could trigger stop-loss orders from short-term traders, potentially leading to a deeper correction towards the 50-day simple moving average ($51,197). On the other hand, both moving averages are currently trending upwards, and the relative strength index (RSI) is in positive territory on the 4-hour chart, indicating bullish dominance. Buyers have consistently kept the price above the 20-EMA, showcasing buying interest with each minor dip. A close above $70,000 could mark the beginning of the next phase of the uptrend. However, if the price reverses and dips below the 20-EMA, it might target the 50-SMA. A close below this support level would hint at a potential decrease in bullish momentum. In such a scenario, the pair could decline towards $59,000.

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