Bitcoin (BTC) has taken a bullish turn over the last 24 hours, as sharp gains are also seen across a number of alternative cryptocurrencies (altcoins).

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 was likely fueled by increased investor demand for altcoins. For instance, XRP – the third largest cryptocurrency by market capitalization – has risen by 42 percent in the last 24 hours and 18 percent of the total XRP trading volume is coming from XRP/BTC pairs, according to CoinMarketCap.

Aurora (AOA) is up 57 percent on the day and is the best performing cryptocurrency on CoinMarketCap. More importantly, about 60 percent of its total trading volume is also originating from pairs with BTC. On similar lines, MONA’s 43 percent price rise is likely being fueled by MONA/BTC and MONA/JPY pairs, volume data shows.

It’s worth noting that most alternative cryptocurrencies are traded against majors like BTC and ethereum’s ETH token. So, money tends to flow into altcoins via BTC, creating upside pressure on the leading cryptocurrency.

As a result, BTC could be in for further gains if the altcoin rally keeps attracting investors to the market.

On the charts, the convincing move above $6,600 (Sept. 14 high) is painting a bullish picture, at least for the short-term.

Daily chart

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 may well move to test the upper edge of the pennant pattern, currently located at $7,050, over the weekend.

A UTC close above that level would add credence to higher price lows set over the last three months and bring potential for a move towards July highs above $8,500.

View

BTC’s recovery from $6,100 seen in the last 48 hours is likely associated with a surge in interest in altcoins.

The double bottom breakout has opened the doors to $7,050. A UTC close above that level would confirm a pennant breakout and boost the prospects of a sustained rally to $8,500.

On the downside, acceptance below $6,600 would neutralize the immediate bullish outlook. A UTC close below the pennant support will likely put the bears back in charge.

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

Bitcoin and USD image via Shutterstock; Charts by Trading View