Bulls may not have long to wait before BTC price action sees its next leg up, traders suggest, with $35,500 in focus for a breakout.
Bitcoin battles $35K as traders agree volatile BTC price move incomingMARKET UPDATE
Bitcoin (BTC) took a stab at key resistance around $36,000 on Wednesday as anticipation built around a breakout.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
BTC breakout means first stop: $39,000
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD repeatedbly tapping but failing to flip the $35,000 mark on Wednesday.
The largest cryptocurrency rebounded from lower levels overnight, calming those concerned that important $33,000 support would be violated.
With the area around $36,000 providing a significant resistance band, however, low volumes and a general “compression” structure kept bulls firmly in check on the day.
BTC/USD buy and sell levels (Binance) as of July 7. Source: Material Indicators/Twitter
For popular trader Michaël van de Poppe, Bitcoin needed a clean breakout at $35,500 to cement continuation of bullish action. That said, the potential upside limit under such circumstances could be much higher.
“If $35,500 breaks, I think we are going to get a run towards even $39,000,” he explained in his latest YouTube update.
A retest of recent highs just below $37,000 should then enter, with success opening up the path to higher levels.
“Really, the higher timeframe level is between $40,600 to $42,000,” he continued.
“If that cracks, I think we’re going to have a retest around the $50,000 level and momentum starts to kick back into the markets very soon.”
Altcoins set for price “outperformance” vs. Bitcoin
Altcoins, meanwhile, continued their moderate upside shift, with Ether (ETH) notably holding on to strength against BTC. The ETH/BTC pair, in particular, is now at a monthly high.
ETH/BTC 4-hour candle chart. Source: TradingView
The top 50 cryptocurrencies by market capitalization saw daily gains of up to 13%, while other tokens remained flat.
Related: Is the Bitcoin bull run only in the ‘disbelief’ market cycle phase?
“What are my expectations on the markets in general? I think we’ve bottomed out,” van de Poppe concluded.
“I think we’re going to continue moving to the upside, and I think in the coming months until Bitcoin gets to the all-time high, altcoins are going to outperform Bitcoin heavily.”
Fellow trader and analyst Rekt Capital joined in predicting an end to the middling price movements, which have characterized Bitcoin in recent days.
“A volatile move for BTC is coming in the next few days,” he forecast, referencing the popular Wyckoff method as a hint that any potential move would be up, not down.
In an official statement on Wednesday, Visa announced that its crypto-enabled cards processed more than $1 billion in total spending in the first half of 2021.
The company noted that Visa is partnering with 50 major companies in the crypto industry as well as crypto card programs enabling users to convert and spend digital currency at 70 million merchants worldwide. Given the size of spending on Visa crypto-linked cards, the company said that “it’s clear that the crypto community sees value in linking digital currencies to Visa’s global network.”
Visa emphasized that its digital currency support does not require global merchants to accept cryptocurrencies like Bitcoin (BTC) directly though. As previously reported, Visa has been working with major crypto players like cryptocurrency exchange platform Crypto.com to enable a crypto settlement system for fiat transactions. The company has also been closely working with other major crypto companies like FTX exchange, Coinbase, CoinZoom, and others.
The firm also stated that stablecoins — cryptocurrencies pegged to the value of other assets or fiat currencies like the United States dollar — are “starting to live up the promise of digital fiat,” outlining its developer-friendly features combined with the reliability of fiat-backed reserves. “Stablecoins are on track to become an important part of the broader digital transformation of financial services, and Visa is excited to help shape and support that development,” the company wrote, adding: