In the run-up to the record options expiry last Friday, the price of Bitcoin (BTC) saw a correction. Despite the fact that others were anticipating a major move on the same day, nothing did. The real correction took place prior to the incident. Bitcoin’s price has bottomed out and has begun to rise on the same day.
The current surge over $59,000 is being fuelled by positive reports from Visa and PayPal, all of whom are entering the Bitcoin and cryptocurrency payment markets. To put it another way, the stock is in the midst of a bull run, and any correction is a boon to traders and buyers.
Critical support zone holds for more upside
The vital support field between $49,500 and $51,000 was only checked last week, as seen in the map above. As the support has held, another higher low has been made, resulting in revived upward momentum, which is currently being played out.
Since September, when the index broke through $12,000 and began to surge, the whole system has been massively bullish. The new higher low was made at $42,000, which became the vital support level to maintain. Since Bitcoin’s price did not need such a severe reversal this time, the recent low of $49,500-$51,000 may be considered the current higher low.
As a result, the Fibonacci extension will be used to determine the next points of interest, which are $73,000 and $92,000 if Bitcoin’s price breaks past the new all-time high of about $61,000.
The total market cap looks bullish
The global market capitalisation is experiencing a similar assistance evaluation, when the $1.5 trillion thresholds were crucial to maintain.
Since the overall market cap of cryptocurrencies avoided the correction, further upside is quite probable when the all-time high regions are checked.
If more intensity is seen, the next points of interest for the global market cap are $2.2 trillion, which is also verified by the Fibonacci expansion.
Bitcoin dominance chart approaches a critical zone
Bitcoin’s domination map reveals a crucial breaker for more downside. If the supremacy falls below 60%, it is safe to assume that a rapid decline towards 50% would occur.
That is not unlikely, given that the summer months are always very favourable for altcoins. During this time in 2020, there were large rallies, and investors recall the summer of 2017.
Many altcoin charts are looking bullish for breakouts against Bitcoin, so history may repeat itself. As a result, for alt season to occur, the price of Bitcoin must be comparatively steady or steadily grind upward, as it is currently.
A possible scenario for Bitcoin
Bitcoin’s 4-hour chart indicates a strong uptrend from its recent low of $50,000.
Several vital support levels, however, are being built through this recovery. The critical place to keep at the moment is $56,000. More upside is possible for the industry as long as the area retains funding. This opens the door to fresh all-time highs and possibly $73,000.
On the plus hand, the red box indicates the vital region to crack, which is $59,000-$60,000. Before then, altcoins are expected to gain steam, and even if Bitcoin hits new all-time records, altcoins will most likely follow suit.
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