The BTC market has continued to move upwards over the past seven days. The prevailing trend helped BTC keep the bulls alive in the market – taking prices from $ 45000 to $ 49000.
However, the charts show that the current bull run in Bitcoin is not as enticing as the previous ones. Of course, it is a little early to speculate on the strength of the buyers, but the current price action clearly indicates a gradual push to the upside.
Moreover, the boom in altcoins with convincing momentum proves that institutional buyers are eyeing the altcoin section right now. That being said, in the Bitcoin market, when looking at an absolute note, the price action is decent enough for an official uptrend. Although altcoins have performed 2-3 times better in the last few weeks, it doesn't change the fact that BTC was the first cryptocurrency to break out of the over consolidation -which made it the market leader.
Just based on how few altcoins have performed for a while, the focus seems to be shifting away from Bitcoin and Ethereum to other projects. In fact several cryptocurrencies incl Cardano , Terra , Solana , are already trading at their highest levels, although they started their uptrend after BTC and ETH . Overall, however, BTC comes to the list, leaving several other altcoins behind.
Bitcoin's uptrend is here to stay
Despite China's crackdown in May, Bitcoin prices held on to higher timeframe support levels, confirming the existence of bulls in the market.
When the market was in an uptrend in the first quarter of 2021, there were signs that the price action was getting weaker with each step the market moved up. Looking at the trendline (dotted line) on the uptrend, it can be seen that the bulls are tracking back significantly and unable to make higher highs evident, indicating that buyers are slowly losing steam, pushing prices higher. Thus, price slowdowns and news updates against Bitcoin brought its price into free fall.
It is worth noting that the price holding above $30,000, despite sellers coming in strongly, confirms that the current absorption is part of a correction and not essentially a downtrend transition.
So, markets have started to consolidate as short-term bears push the market off resistance levels and long-term bulls buy back from the breakout zone. Technical Support .
Prices took support at $ 30,000 and $ 35,000 and resistance at $ 40,000. A few to three reactions came from resistance with satisfactory momentum, but buyers also rallied with similar strength. Finally, after an extended market for more than three months, long-term buyers began to resume their uptrend. As a result, the price broke strongly above the $40,000 resistance level, taking away the short-term bears.
Nevertheless, on the risk side, if the price trajectory is observed after the breakout, it can be seen that prices failed to climb north until ATH with one press. While several green candles are moving up, a bearish candle is bringing it back down – reducing the speed of buyers.
Bitcoin fades as bulls focus on altcoins
As mentioned in -early the market of bitcoins climbs up but has hit momentum. A basic principle of price action, momentum, which determines the strength of bulls/bears in the market, depicts that Bitcoin is gradually slowing down. The first impulse push was decent in length but failed to fire within a candle or two. Also, the rally lasted longer than expected as buyers made a new higher high after three attempts.
A few days ago, buyers made an even higher high, breaking above $ 48,000, with momentum on the buyer side. But in terms of distance, buyers have pushed 12% up, up from 27% on their previous push.
The market is currently trading between $48,500 and $49,500. The market moving between these two levels is tight, but increased pressure from buyers/sellers can break the price in either direction. There are several possibilities for the current market situation – the market could continue to move for another day and break above the top of the range if altcoins head higher.
Alternatively, the market may break below the range and hold in the support area around $ 40,000. Another possible scenario could be a combination of the two scenarios mentioned. Essentially, prices could initially fall to the support level or even lower and then move to create another set of higher highs and lower lows.