Bitcoin (BTC) headed towards a key Wyckoff level on July 6 as BTC price action got traders excited about an altcoin surge.
Wyckoff in focus below $36,000
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD trading up 4.6% versus the previous day’s lows on Tuesday.
After seeing tests of $33,000 support, bulls won out overnight, sending Bitcoin higher. Now, a key area to watch is $36,000, popular analyst Rekt Capital says.
According to Wyckoff analysis, a popular method for charting BTC price action, $36,000 marks the likely end of a “phase C” and the beginning of a “phase D” for BTC/USD — with trajectory favoring the upside.
“BTC dips to the ~$33000 area and holds the orange Higher Low perfectly,” Rekt Capital commented alongside a chart on the day.
As Cointelegraph reported, potential higher targets currently include an unfilled CME futures gap above $46,500. This would be a significant move if it were to happen, as Bitcoin would effectively exit a trading range in which it has been sitting for multiple weeks.
Trader Filbfilb offered a more sobering view. Bears, he warned, were still in command of levels which have attracted the highest volumes, to so-called “point of control” or POC.
“Trend remains down,” he summarized on Monday before the bounce higher.
“Bears dominating the POC / middle of the range. It is what it is until the POC becomes support.”
Bitcoin vs. altcoins in a game of grinding
Conditions meanwhile may be right for altcoins to benefit more than Bitcoin in the mid term.
Related: Ethereum price can gain 40% on Bitcoin, argues analyst as London fork nears
In an atmosphere in which cryptocurrencies broadly “grind up” rather than shoot higher, it may be more than just BTC/USD which forms a point of interest, trader Michaël van de Poppe argued.
“They looked great and got destroyed through that final drop of Bitcoin to $30K. Therefore, I’m expecting them to continue outperforming #Bitcoin in the coming months.”
Some of the top fifty cryptocurrencies by market cap woke up overnight, seeing gains that topped 10%. Ether (ETH), the largest altcoin, traded up 3% at $2,340. Meanwhile, many DeFi tokens were the standouts over the past 24 hours, namely SUSHI and AAVE, which rallied by roughly 20%.