Bitcoin ($BTC), which started the new week with a rally, is increasing its bullish signals.
BTC, which has been experiencing sideways price movement for the past few days, had the wind behind it as the weekly close came to a close. Bitcoin, which tested a critical resistance level of $64,500 during the overnight hours, retreated to the $63,800 band. Although the resistance zone could not be overcome in one go, the crypto kingpin, which is on an uptrend, gave investors confidence.
At the time of writing, BTC, which has found buyers at $63,867, could test the $56,602-$52,614 and $50,580 levels respectively if it loses the $60,000 support zone. The news flow regarding the Israel-Iran tension will play an important role in this process. A fresh wave of selling could come in cryptocurrencies amid the tension in the Middle East. Weekly closes below the recently tested low of $52,614 could lead to momentary declines towards the $40,000-$42,000 range.
If the chaos in the Middle East calms down, the US presidential election has a positive impact on the market, or BTC makes weekly closes above $63,000, the levels of $64,758 to $67,091 to $70,500 and $73,684 could be targets, respectively. In such a scenario, the $70,500 level will be important. Weekly closes above this level will further strengthen Bitcoin’s bull run.
To see a surge in the altcoin market, Ethereum’s performance and BTC dominance will be important. If ETH holds above $2,500 or $BTC dominance drops to 50 percent, the altcoin bull run could begin.