You can defeat an opponent in two ways — complete superiority over him or stable measured pressure on him. Looking at the Bitcoin market in recent weeks, buyers have chosen the second tactic. A steady decline in the weekly timeframe, the price slowdown before the range of $48,000-$50,000 did not help sellers to start a new fall wave of BTC.
In the previous analysis, we expected the start of the correction with the first target of $45,000. However, sellers managed to lower the price only to $46,512, demonstrating weakness to the entire cryptocurrency market. Interestingly, the Bitcoin market has managed to continue to grow while steadily declining dominance in the cryptocurrency market.
At the moment, the market situation has changed significantly. And for 100% confirmation of the fact that BTC price is ready to grow, buyers need to prove their strength in the range of $48,000-$50,000. Pushing the liquidity level up against the background of a positive mood in the market is 50% success. The other 50% is a willingness to keep the price, demonstrating the weakness of the opponent (sellers).
In the weekly timeframe, we see that now the price is on the verge of consolidation after a sharp fall in May. The closing of the weekly candle at $51,900 predicts buyers the BTC price growth continuation this week. Though, feeling the first resistance of sellers, we look forward to a local correction in the range of $48,000-$50,000 to determine the true capacity of buyers.
Technical Analysis of BTC on a Daily Timeframe
As we wrote above, the whole attack of buyers is based on weak, but stable pressure of buyers on the price. Buyers decided to hold this event in the local growth channel. With a high probability from $54,000, a new local correction of the BTC price will begin. If buyers are strong and ready to continue active market purchases – they do not allow to lower the price below $48,970. Within this mark is the consolidation, thanks to which buyers were able to squeeze the range of $48,000-$50,000.
Finally, if this condition is met, we will see a strong impulse of the BTC price up to $60,000. The critical point of the current growth scenario is around $48,000. Below this mark, buyers will lose control of the market and will be forced to retreat to at least in the range of $43,700-$44,700.
The Bitcoin Dominance Is at a Critical Point
Reducing the impact of Bitcoin on the cryptocurrency market and at the same time increasing its price creates good preconditions for altcoins to become independent. Shooting up by 15%-30% in a few hours, altcoins show a good prospect of continued growth in large timeframes. An interesting fact is that local shots of altcoins occur at different times, which allows experienced investors to deftly jump from one cryptocurrency that has already fired to another. Nevertheless, after the BTC price fixes above $50,000, the capital may return to Bitcoin. In this case, the altcoin market will be hit again by a local depression until Bitcoin updates the local low.