Bitcoin's reaction to this key level could determine whether "altseason" continues

Bitcoin has led the crypto markets to see some intense bearishness over the past couple of days, with its recent drop below $10,000 leading many of the altcoins that were previously caught within intense uptrends to see sizeable retraces.

In spite of the conspicuous bearishness stemming from the market-wide downtrend seen over the past few days, it is important to note that Bitcoin is now approaching a key support level that could determine the fate of altcoins.

Bitcoin bounces at key support after a sharp overnight selloff.

Overnight, Bitcoin's bears extended the cryptocurrency's recent selloff by pushing the cryptocurrency down to lows of $9,500, which is where it was able to find enough support to push it higher.

Today's bearish movement to this key price region led major altcoins to see some mixed price action, with XRP dropping 2 percent while Ethereum has climbed 1.8 percent.

This mixed price action appears to mark the start of a consolidation phase for these cryptocurrencies, with their future price action likely being dependent on whether or not Bitcoin is able to continue maintaining above its key near-term support.

BTC's reaction to this level could determine the fate of "Altseason".

Luke Martin, a top cryptocurrency analyst, recently explained that Bitcoin's ability to hold above this support is giving altcoins the chance to bounce and that a move up from this level could lead the recent altseason to extend further.

"This weekend major alts pulled back vs Bitcoin as BTC dropped. As BTC reaches a potential support today, stopping the drop for now, is allowing ETH and other majors to begin bouncing. *If* Bitcoin uptrend resumes - I expect altcoin outperformance to continue."

How BTC reacts to its current price region in the coming hours and days should offer clarity as to whether or not altcoins will be able to continue seeing parabolic rallies in the month ahead. Posted In: Bitcoin, Analysis, Price Watch.