Bitcoin, Altcoins Breakout With Strength: Are New Highs Next?

Key points:

Bitcoin will have to flip the $80,000 level into support to continue its up move to $84,000.Several major altcoins are finding buyers at lower levels, but they will have to overcome the overhead resistance to start a new up move.

Bitcoin (BTC) has risen above $78,000, extending upon its 11.87% rally in April, per CoinGlass data. The recovery in April was supported by solid buying in the US spot BTC exchange-traded funds, which saw $1.97 billion in inflows, according to SoSoValue data.

The rally is expected to encounter selling in the zone between the True Market Mean at $78,000 and the Short-Term Holder (STH) cost basis at $79,000. Analysts are closely monitoring the $80,000 level, which needs to be flipped into support for confirmation that bulls remain in control.

Crypto market data daily view. Source: TradingView

CryptoQuant is not convinced that BTC’s rally could extend further. In a recent report, the crypto analytics firm said that BTC’s up move in April was fuelled mainly by futures traders, while spot demand contracted. That suggests “the market’s marginal buyer was speculative, not fundamental.” CryptoQuant warned in an X post that the exact setup had “preceded the next leg down” in 2022.

Could BTC and the major altcoins break above their overhead resistance levels? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

Bitcoin price prediction

BTC turned up from the 20-day exponential moving average ($75,814) on Thursday, indicating buying on dips.

BTC/USDT daily chart. Source: Cointelegraph/TradingView

The relief rally is expected to face selling pressure at $79,500, but if buyers pierce the overhead resistance, the uptrend is expected to gain momentum, and the BTC/USDT pair may rally to $84,000.

The 20-day EMA is the crucial support to watch out for on the downside. If the BTC price turns down from the current level or the overhead resistance and breaks below the 20-day EMA, it may start a deeper correction to the 50-day simple moving average ($72,362) and then the support line.