Bitcoin Surges To $3,700

Following this past weekend’s volatile trading period that led many altcoins to plunge 10% or more, the cryptocurrency markets bounced today, recovering much of its recent losses. Today’s bounce also seemed to confirm $3,550 as a strong level of support for Bitcoin.

Analysts are now claiming that this latest move up is significant from a technical and a fundamental standpoint, as it signals that the markets have been forming higher lows ever since they touched the low-$3,000 region in mid-December.

h3 Bitcoin Trading Range Between $3,550 and $4,200 Validated/h3

As discussed in last Friday’s market update, analysts previously speculated that Bitcoin had established a new trading range between $3,550 and $4,200 after it was unable to trade above $4,000 for an extended period of time. Over the weekend, Bitcoin dipped to lows of just above $3,550 before bouncing earlier today, which signals that there was buying pressure leading this price to be a level of support.

At the time of writing, Bitcoin (BTC) is trading up over 4% at its current price of $3,700, which is slightly above where it was trading at last week prior to this weekend’s drop.

Mati Greenspan, the senior market analyst at eToro, recently spoke to Forbes about the importance of Bitcoin holding the $3,000 to $3,500 price range as a level of support, noting that the validation of this range as a support level is significant for the cryptocurrency on both a fundamental and a technical standpoint. Greenspan explained, "This bounce seems to have a strong case in both technical and fundamental analysis… The support area between $3,000 and $3,500 is holding, just as we've been discussing these last few months."

Last week, Greenspan said in an email that BTC was caught in a range between $3,550 and $4,200, which does appear to be validated by the cryptocurrency’s latest move. “As we've been discussing since mid-November, the current range is from $3,000 to $5,000... It seems now, that bitcoin has opened a new mini-range within that from $3,550 to approximately $4,200,” he explained. Trading Room, a popular cryptocurrency analyst group, also pointed to the significance of today’s price action in a recent tweet, noting that the important support levels for Bitcoin and the overall cryptocurrency markets have held strong so far. “All key levels held firm & we are getting a perfect bounce so far. Will look for long entries on confirmation of trend change,” they said.

h3 Altcoin Markets Surge/h3

Bitcoin’s upwards move has led most major altcoins to surge. At the time of writing, Ethereum is trading up over 10% at its current price of $129, up significantly from its recent lows of $116. XRP has also bounced today and is trading up nearly 5% at its current price of $0.333. XRP is down from its one-week highs of $0.38 but is up from its recent lows of $0.315.

Bitcoin Cash is trading up 7.2% at its current price of $133.85 and is up from its recent lows of $124.

Written By: Covesting Research