BTC Technical Analysis: Global Consolidation Is Not Over
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However, buyers did not allow the BTC price to fall below this mark for two weeks. If we look at the history of Bitcoin trading, we see that in November 2021, buyers had a similar situation. The BTC price broke the historical high, but could not be fixed above it. As a result, the bitcoin market has seen a strong counter-trend in the form of a wave of decline. Given the retention of $29,000 by buyers, we believe that the consolidation of Bitcoin in the range of $29,000-$26,000 is incomplete.
Therefore, by the end of May, we expect a local reversal of the BTC price with the first target of $38,000. In case of total weakness of buyers - from this mark, the new fall wave and breakdown of the lower range of consolidation can begin. The final target of a local growth wave is the range of $51,000.
BTC Technical Analysis On The Daily Timeframe
Analyzing the movement of the BTC price on the daily timeframe, one can notice a powerful accumulation zone, which buyers formed in two weeks. In fact, the correction of the fall wave from April 2021 has not yet begun. After abnormally high trading volumes on 9-12 May, only small sellers remained on the market. Buyers buy these sellers at local lows.
During the trading week of 23 May, we expect a breakdown of this range and a test mark of $34,000. From this mark, it is possible to activate sellers and re-test the range of $29,000. If that happens, growth to $38,000 is inevitable. After such a correction, the BTC price should no longer be in the $29,000 range. Otherwise, it will be seen as a weakness and a signal for the sale of BTC and the likely continuation of the fall in the range of $20,000. However, so far this is our alternative scenario.
The USDT Dominance Hints At The Global Reversal Of The Crypto Market
The weekly USDT dominance chart has reached its peak again. The indicator updated its historical high, the project could not go beyond the global wedge. If we analyze all the historical highs of the USDT dominance - we see that during its decline, the market suddenly comes to life and begins a powerful growth wave. We think that this time there will be no dislocations. The only question is - which will grow better, the Bitcoin price or the price of altcoins?
Given how much altcoin prices have fallen (to 2020 levels), we expect their prices to recover aggressively. At that time, the Bitcoin growth will continue, but it may not be as active in the period from October 2020 to February 2021.