Bitcoin price passes $32K with traders wary of ‘relief rally’ if resistance stays

Bitcoin (BTC) passed $32,000 later on July 16 as positive reactions over Bank of America’s (BoA) Bitcoin futures go-ahead continued.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bitcoin nears $32,300 point of interest 

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD rising 1.4% on the day to hit new local highs of $32,150 on Bitstamp.

The pair saw an abrupt reversal of trajectory on the BoA announcement, having previously tested $31,000 support repeatedly throughout the day.

As such, a key zone to retake for potential bullish continuation, $32,300, was now back on the menu, this seeming an unlikely goal just hours before.

For trader and analyst Rekt Capital, current levels are key when it comes to the daily close.

“BTC needs to reclaim orange as support if BTC is to maintain the upper half of this blue wedging structure,” he said alongside an explanatory chart.

“If BTC can’t reclaim orange as support, today’s recovery could merely be a relief rally to confirm orange as resistance.”

BTC/USD 1-day candle chart with wedging structure. Source: Rekt Capital/ Twitter

As Cointelegraph reported, on the lower end, $31,000 remained as a crucial breaker whose failure to hold would open the door to $24,000.

Altcoins pare daily losses

Bitcoin’s latest move had an instantaneous knock-on effect for altcoins.

Whereas daily losses across major cryptocurrencies were typically 5% on Friday, these swiftly dissipated and some altcoins even began posting gains.

Largest altcoin Ether (ETH) traded at $1,923 at the time of writing, launching towards the $2,000 level away from a support zone nearer $1,800. 

ETH/USD 1-hour candle chart (Bitstamp). Source: TradingView

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