Recent price action suggests that leading cryptocurrency Bitcoin could be on the verge of a fresh rally. According to a report by 10x Research, a breakout above a key resistance level could spell the end of the current bear trend as Bitcoin and certain Altcoin are already showing signs of recovery.
Key resistance is broken, signaling a trend reversal
In recent months, the price of Bitcoin has undergone a significant correction, forming a series of lower highs since March. However, experts at 10x Research believe that this bear trend could end if Bitcoin can break through the key level of $65,000. This resistance level is seen as a turning point for the cryptocurrency, and its breakthrough could open the way for a rise to $70,000 or higher on the back of a recovery.
This forecast is supported by medium-term technical indicators, which show encouraging signs despite overbought conditions in September. In fact, after this short-lived rally, Bitcoin entered overbought territory, but the data now shows signs of stabilization. Therefore, a break above the $65,000 level could signal a return to the upside, boosting investor confidence in risky assets.
Led by Bitcoin, the Altcoin market
If the bullish trend is confirmed, the Altcoin market may also see a strong recovery in activity. According to 10x Research, high-volatility Altcoin, especially those with smaller market capitalizations, appear to be well-positioned in this dynamic. Cryptocurrencies like TAO, ENA, SEI, and APT have particularly caught the attention of investors due to their growth potential in an environment where decentralized finance (DeFi) is gaining renewed attention.
As for Ethereum, while its fundamentals remain weak, technical signals suggest a recovery could be on the horizon. However, analysts remain cautious about the likelihood of Ethereum reaching its previous all-time high again. While a significant uptick is conceivable, it is likely to be limited compared to previous peaks. Still, that doesn’t preclude the opportunities this recovery could bring, not only for Ethereum but also for the broader Altcoin market.
A break above the $65,000 level could be the catalyst that people are looking forward to to reignite the bullish trend in Bitcoin and take the entire Altcoin market with it. If this dynamic is confirmed, the cryptocurrency space could see significant growth in the coming months, especially for smaller market capitalization assets.
