MARKET UPDATE
Monday proved to be a surprisingly fruitful day for Bitcoin (BTC) price as the digital asset rallied 12.73% to $6,599 before pulling back to $6,380 a few hours later.
Despite gloomy news of the U.S. reaching 3,000 deaths from the Coronavirus and major retailers furloughing 500,000 workers, traditional markets also surged on Monday. The S&P 500 rallied 3.35% while the Dow and Nasdaq gained 3.19% and 3.62% respectively.
Crypto market daily price chart. Source: Coin360
As discussed in a recent analysis, the price of Bitcoin needed to reclaim the $6,200 level to avoid a revisit to $5,870. Retaking $6,200 placed the price above the descending trendline and the 23.6% Fibonacci retracement level.
BTC USDT 4-hour chart. Source: TradingView
Earlier in the day Cointelegraph contributor Michaël van de Poppe suggested that once above $6,200 the price could quickly rise to $6,600 and traders will note that today the price sliced through the volume gap from $6,250-$6,590 on the VPVR indicator.
Despite today’s impressive gain, van de Poppe believes that while below $6,900 Bitcoin price remains bearish and he expects the price to encounter stiff resistance once $6,600 is reached.
According to van de Poppe, both “bull/bear scenarios pivot around the $6,600 area” and he further explained that:
”The moment that the $6,600 area is rejected and the CME gap is closed, further downward pressure is expected to occur.”
BTC USDT daily chart. Source: TradingView
A push above $6,900 wouldn’t necessarily be the cure-all for Bitcoin’s bearish slant as there is a large high volume VPVR node at $7,200 and this level is expected to function as a strong resistance. Once above $7,200 traders will set their targets on the $8,000 where the 50 and 200-day moving averages are currently situated.
Bitcoin daily price chart. Source: Coin360
The majority of the top-10 altcoins also posted moderate gains as Bitcoin price surged toward $6,600. Ether (ETH) notched a 3.57% gain while Bitcoin SV (BSV) and Binance Coin (BNB) added 9.66% and 5.50% respectively.
The overall cryptocurrency market cap now stands at $180.7 billion and Bitcoin’s dominance rate is 65.2%.
