In possibly the most exciting news of the day, and a great way to start the week, Bitcoin has popped like a bubble through its 6900 resistance. It's now exchanging hands at a little over $7100, which is exciting news.

Now, is this a sign that the downtrend is over, and we have started s steady rise to 10000? Or is this just a takeout and would we be back in the low 6ks again?

Here's my answer.

Even though I'm not going to use a chart in this analysis, I'll just leave one there for eye candy.

Ok. So I personally think that Bitcoin hasn't recovered yet. 

I think so because the volume backing this pump was exceedingly low. I mean, take a look at the chart I thought I won't reference.

Look back at the first test of 7.1k. Look at the volume behind that pump. Now compare it to this one.

The volume has left alts massively. That means that unlike the first pump, this isn't fresh volume. This is volume from within then crypto space, and it would soon flow back into the alts it left.

While I might be wrong, this is the most logical explanation possible. Because the uptrend won't continue forever.

People see that Bitcoin is trending up, then they get excited and sell off their alts to buy bitcoin. When the bears come back to reclaim their land, the money that left the alts would flow back into the alts and the alts would pump.

But if I'm wrong, Bitcoin might go on to test the 7.5k level, which is a psychological level. That would act as a strong resistance at first, but if it tests again, it might break through.

Make sure to take all this with a grain of salt, as I'm not a financial advisor.

Thanks for reading guys.