Bitcoin (BTC) has led the crypto markets to see some intense bearishness over the past couple of days, with its recent drop below $10,000 leading many of the altcoins that were previously caught within intense uptrends to see sizeable retraces.
In spite of the conspicuous bearishness stemming from the market-wide downtrend seen over the past few days, it is important to note that Bitcoin is now approaching a key support level that could determine the fate of altcoins.
If BTC is able to bounce at this level, one top analyst believes altcoins will be able to continue outperforming the benchmark cryptocurrency.
Bitcoin bounces at key support after a sharp overnight selloff
Overnight, Bitcoin’s bears extended the cryptocurrency’s recent selloff by pushing the cryptocurrency down to lows of $9,500, which is where it was able to find enough support to push it higher.
The crypto is now trading sideways around $9,600, which is right in the middle of its key support region between roughly $9,500 and $9,700.
Today’s bearish movement to this key price region led major altcoins to see some mixed price action, with XRP dropping 2 percent while Ethereum has climbed 1.8 percent.
This mixed price action appears to mark the start of a consolidation phase for these cryptocurrencies, with their future price action likely being dependent on whether or not Bitcoin is able to continue maintaining above its key near-term support.
If this price level breaks, however, the recent downtrend could turn into a bout of capitulation that leads the ongoing retrace to cut significantly deeper.
BTC’s reaction to this level could determine the fate of “altseason”
Luke Martin, a top cryptocurrency analyst,