In yesterday’s trading, Bitcoin saw a sharp decline that took it well below the $11.5K level of support. The world’s largest cryptocurrency even spiked below $11,200 and formed a swing low near $11,130.
Since then, the BTC price has embarked on a slow and steady recovery that has taken it above crucial resistance barriers at $11,200 and $11,400.
At the time of writing this article, BTC is trading just below the $11,500 pivot level. The top crypto is trading at $11, 479 as it faces strong resistance due to a bearish trend line that has formed near $11,620.
If there is a successful break above that trend line, BTC could start a strong rally toward $11,800 in the coming sessions. Above this level, the bulls are likely to attempt a new break above $12K.
Bitcoin Price Could Outperform Altcoins
Even as BTC stalls in the mid-$11,000s with apparent inability to surmount the resistance at $12K, some analysts are hopeful that the King coin’s rally is far from finished.
Mike Novogratz, the founder of Galaxy Digital, believes that BTC prices are likely to surge higher in the coming months. In a tweet posted yesterday, Novogratz suggested that the flagship coin’s price uptick isn’t over yet:
“Going on @SquawkCNBCat 8.05am. Always fun. I don’t think we have seen the highs in gold or BTC for the year,” he wrote.
This sentiment is corroborated by a bull flag pattern currently forming on the BTC dominance chart shown below.
As can be seen, an Adam and Eve bottom may be materializing. This formation typically resembles a double bottom, where a sharp V-shaped pattern precedes a second curved bottom of a similar degree.
If the BTC price breaks the upper trend line on this chart, the flagship digital asset could rally higher and outperform the rest of the crypto market.
In this scenario, the resultant BTC momentum could spell disaster for altcoins, which would see a strong correction.
Algorand [ALGO] Price Up 33%
ALGO, which has a market cap of $345.1M, is one of the best performing digital assets of the day. The altcoin gained 33.01% to trade at $0.6062 during press time.
The coin’s rally can be attributed to a partnership between Borderless Capital and StakerDAO on August 6th.
That deal was aimed at fast-tracking access to DeFi products via the Algorand Ecosystem, and the positive development has reflected in today’s ALGO price movement.