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(Kitco News) - The crypto market got the week off to a positive start after an afternoon spike in Bitcoin (BTC) pushed the top crypto to its highest price since June 11 and led to gains across the market following last week’s sideways trading.
U.S. equities, on the other hand, stumbled out of the block on Monday as investors continued to digest the data from Friday’s jobs report, which showed continued strength in the labor market, leading some to speculate that the Federal Reserve will need to continue to raise interest rates. At the close of markets, the S&P and Dow managed to finish in the green, up 0.1% and 0.3%, respectively, while the Nasdaq finished down 0.03%.
Data from TradingView shows that after Bitcoin spiked above $28,600 late on Sunday, bears attempted to hammer it back below $28,000 but met stiff resistance from bulls at $28,200. After bears exhausted their effort, bulls reversed course and pushed Bitcoin to a daily high of $29,291 in the afternoon on Monday and look poised to push for additional gains.
BTC/USD 4-hour chart. Source: TradingView
The early move higher on Monday led to “firmer prices for April Bitcoin futures,” said Kitco senior technical analyst Jim Wyckoff, who noted that “The market has been trading sideways at higher levels for three weeks and the price uptrend has stalled.”
According to Wyckoff, “BC bulls still have the firm overall near-term technical advantage but need to show some fresh power soon to keep the price uptrend alive.”
Analysts at Eight Global noted that the sideways trading over the past couple of weeks was “Not surprising after the strong push of price upwards over the last couple of months.”
“Candle closes have been flip-flopping above and under the daily 8EMA,” they wrote, and suggested that the waiting game will continue “Until we get a clear break out of the channel or hard rejection at the channel top, and confirmed support or resistance of the 8EMA.”
BTC/USD 1-day chart. Source: Eight Global
While Monday’s move higher managed to climb above the resistance at $29,000, it's still too early to pile into longs in anticipation of a further move higher as Eight Global founder Michaël van de Poppe highlighted in a tweet, “Big event this week with CPI, probably the market mover.”
As for what price level to keep an eye on as a signal that the bull market is in full swing, crypto trader Sheldon the Sniper posted the following tweet highlighting $31,000 as the level that needs to be breached in order to remain bullish.
Looks like $BTC has chosen the direction it wants to move . Very important to get a new high on this push
— Sheldon The Sniper (@Sheldon_Sniper) April 10, 2023
$31 000 + is what we want from this push to remain bullish .. #Bitcoin pic.twitter.com/AbuTCsRa9L
Altcoins climb higher
The sudden move higher in Bitcoin benefitted the altcoin market, with all but ten tokens in the top 200 seeing gains on the day following the move.
Daily cryptocurrency market performance. Source: Coin360
Conflux (CFX) and Stargate Finance (STG) led the field with gains of 12.5%, followed by a pair of 9.4% gains for Injective (INJ) and Render Token (RNDR).
The overall cryptocurrency market cap now stands at $1.21 trillion, and Bitcoin’s dominance rate is 46.7%.
