Bitcoin Price Is Charting a Bullish Reversal as Altcoins Surge

Bitcoin is reporting a short-term bearish-to-bullish trend change likely due to sharp gains in alternative cryptocurrencies.

As of writing, the leading cryptocurrency is trading at $6,700 on Bitfinex - up 4.6 percent on a 24-hour basis - having hit a 16-day high of $6,745 earlier today.

BTC's recovery from the five-week low of $6,100 hit Wednesday is likely fueled by increased investor demand for altcoins.

XRP - the fourth largest cryptocurrency by market capitalization - has risen by 42 percent in the last 24 hours and 18 percent of the total trading volume is coming from XRP/BTC pairs, according to CoinMarketCap.

Aurora is up 57 percent on the day and is the best performing cryptocurrency on CoinMarketCap.

Money tends to flow into altcoins via BTC and that creates upside pressure on the leading cryptocurrency.

As seen in the above chart, BTC moved past the double bottom neckline resistance of $6,600 earlier today, confirming a bullish reversal.

The cryptocurrency could test the upper edge of the pennant pattern, currently located at $7,050, over the weekend.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

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