The crypto markets have continued to surge today, maintaining the upwards momentum that was first sparked when Bitcoin began to skyrocket from lows of $4,000. Today’s surge has led many cryptocurrencies to climb 3% or more, with some surging over 10%.
Although today’s upwards momentum is certainly bullish, whether or not individual cryptos are able to continue climbing is largely dependent on if Bitcoin is able to maintain stability above its 200-day median, which recently turned into a support level.
Bitcoin Swings Up Towards $5,200, But is Nearing Resistance
At the time of writing, Bitcoin is trading up nearly 4% at its current price of $5,200, up from its 24-hour lows of just under $5,000. Today’s upwards movement was sparked when BTC briefly dropped below $5,000, which signals that there is a decent amount of buying pressure at this price level.
David Puell, a popular cryptocurrency analyst on Twitter, recently explained that Bitcoin has now established its 200-day median as a strong level of support, which currently exists at roughly $4,000.
“$BTC: Little something for ya… 1. A reminder of how beautiful the 200-day and 200-week moving averages are. 2. Bitcoin’s 200-day median, which just flipped to bullish and should serve as support in the next few months (currently at 4k),” he explained.
Crypto Markets Swing Upwards
Bitcoin’s ability to continue climbing has led the crypto markets to surge, with many individual cryptocurrencies climbing 3% or more.
Bitcoin Cash (BCH) has led today’s market surge, climbing nearly 13% to its current price of $326. In comparison, Ethereum (ETH) has climbed just under 3% to $168.90, while XRP has dropped nominally to its current price of $0.361.
Litecoin is currently trading up nearly 10% at its current price of $96.41 and is nearing the important psychological level of $100.
As for what may be fueling BCH and LTC’s latest surge, Alex Krüger, a popular economist who focuses on cryptocurrencies, recently explained that the amount of outstanding long positions – which he calls “fuel” – is playing a huge role.
“$ETH not moving higher at the moment as strongly as other coins such as $LTC or $BCH has little to do with fundamentals. This is why (less fuel available),” he explained, referencing a chart that shows the open long positions for both Ethereum and Litecoin.
As the weekend continues, traders and analysts alike will gain greater insight into where the markets will head in the week to come.
