Altcoins Could Surge by 70% if Bitcoin is Able to Defend One Critical Level

Bitcoin is once again trading down at its crucial $10,000 support level. Earlier today, bears attempted to invalidate this support when they pushed it to $9,900, but the cryptocurrency was able to rebound from these lows.

Analysts are now conflicted on where BTC will trend next, as a continued defense of $10,000 would be bullish, whereas a sustained dip below it would be a grim sign for its mid-term outlook.

The price action seen this morning has done little to offer clarity into the cryptocurrency’s near-term outlook. Although BTC is rebounding at the moment, as seen with yesterday’s surge, these types of upswings can be fleeting.

One analyst is noting that a sustained bout of consolidation above $10,000 could prove to be highly beneficial for altcoins, potentially allowing them to surge by as much as 70%.

This would come after a period of these tokens getting battered, as many have reverted the bulk of their recent gains throughout the course of this BTC drawdown.

Bitcoin Reclaims $10,000 as Bulls Guard Against Downside

At the time of writing, Bitcoin is trading down just under 3% at its current price of $10,100.

Although this marks a notable decline from daily highs of $10,400 that were set yesterday, it is important to note that it also marks a strong rebound from lows of $9,900 that were hit earlier this morning.

It is possible that this ongoing upswing is simply a short squeeze aimed at liquidating late short positions.

If this is the case, then the gains that come about as a result of this movement may prove to be highly fleeting.

Nonetheless, the aggregated market will benefit from any show of strength, as altcoins have been battered as a result of the recent Bitcoin downturn.

Analyst: This BTC Price Action Could Allow Altcoins to Surge 70%+

One analyst noted that a sustained consolidation phase followed by an upwards expansion for Bitcoin could be just what altcoins need to recoup their recent losses.

He notes that…

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