BTC Technical Analysis: Strange Growth And The Target Of $41,500
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If we look closely at the trading volumes, we can see that since the end of July 2021, the BTC price is moving at low volumes. The growth wave between July and October 2021 and the fall wave from November 2021 to the present happen without increased volumes. This fact shows that the Bitcoin market has entered a global consolidation in the range of $30,000-$65,000, in which it can spend most of 2022.
BTC Technical Analysis On The Daily Timeframe
If on the weekly timeframe you cannot notice the interest of buyers, the daily timeframe shows increased volumes starting from 21 January. It was after the breakdown of the important range of $41,000-$43,000 that buyers became more active. All local attempts by sellers on smaller timeframes fail and eventually, each daily candle closes above the opening price.
In the chart, in addition to the important range of $41,000-$43,000, we also see the main trend line of sellers. We displayed it as a small channel to avoid the effects of false breakdowns. It is within this trend line that there is a high probability of closing the long positions of buyers and the beginning of a new fall wave. The critical point for the local growth wave from 23 January is the mark of $37,000. If BTC buyers are unable to keep this mark, sellers will test the $34,000 range at breakneck speed.
Bitcoin Dominance Has Great Potential For Growth
If you look globally at the chart of the Bitcoin impact on the cryptocurrency market, you can see that its rate has hung in suffocating consolidation. However, at around 40%, the last indicator of dominance was in 2018. Since then, altcoins have felt completely depressed in the cryptocurrency market. If the Bitcoin dominance continues to grow and the BTC price grows, this is the best scenario for the entire cryptocurrency market.
Otherwise, you should expect new powerful altcoins fall waves and a test of $30,000 for Bitcoin. Though, while there is a hidden interest in buying BTC on local corrections, you should first expect a test in the range of $41,000-$43,000.