Bitcoin is currently flashing some subtle signs of strength as the benchmark crypto pushes towards its resistance at $7,000, with this ongoing upswing providing most major altcoins with some much-needed strength.
This has led one analyst to note that an aggregated index of some of the largest altcoins is signaling that bullish continuation is imminent, which means that Ethereum, XRP, and some other tokens could soon rally higher.
There are some key hurdles that could stunt this growth, however, and this potential uptrend will likely hinge largely on whether or not Bitcoin is able to surmount the resistance it faces around its current price.
Analyst: Altcoins Poised for Bullish Continuation as Crypto Market Shapes Up
Earlier this week the aggregated cryptocurrency market shows some intense signs of weakness, primarily rooted in the market-wide downtrend that resulted from Bitcoin’s swift rejection at $7,200 and subsequent decline to lows of $6,600.
In the time following this event, however, BTC has been able to post a steady climb from these lows, generating an upwards tailwind that has allowed many altcoins to also climb higher.
The strong defense of these cryptos’ key support regions has led one prominent trader to note that he anticipates the seven of the largest altcoins to see a notable upswing in the near-term.
He mused this possibility in a recent tweet, in which he pointed to an index comprised of Ethereum, XRP, EOS, Stellar, Tron, Binance Coin, and Chainlink.
“BIG CAPS INDEX | Looks ready for bullish continuation,” he said while pointing to the chart seen below.
The upside target marked on this chart exists roughly 25% above the index’s current price level, signaling that a notable upswing could be imminent in the days ahead.
These Cryptocurrencies Still Need to Surmount Multiple Hurdles
Although the aggregated crypto market may be flashing some bull-favoring signs as BTC navigates towards $7,000, it is important to note that there are still some blockades that could stop these altcoins from pushing higher.
Naturally, in order for this 25% upswing to come to fruition, it requires that Bitcoin remains stable or bullish in the near-term, and the resistance within the lower-$7,000 region may prove to be arduous for bulls to surmount.
Some altcoins referenced above, like Ethereum, also broke through multi-week ascending trendlines throughout the course of the recent market-wide decline, signaling that downside could be imminent if they fail to recapture these key technical levels.
While looking at the above chart, it does appear that this trendline is now resistance for ETH, and other altcoins could be facing a similar dilemma.
Featured image from Unsplash.