BTC Technical Analysis: The Final Target Is $56,000
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Abnormally strong growth in the BTC market can be explained by the presence of a large number of sellers. It is thanks to the open short positions of sellers who aggressively sold even at local lows that the BTC price has revived. Unfortunately, it is on the liquidation of sellers' deposits and their stop orders that the Bitcoin price is now growing irretrievably. However, will it be so easy for buyers to pass the $46,000 range?
In the weekly timeframes, we see that in the range of $46,000-$48,000, the price has consolidated in 5 weeks. Therefore, we doubt that the uncorrected BTC growth will continue. However, a good buying area would be the $40,500-$42,000 range. Keeping this range, buyers will prove on a large timeframe that the fall wave is over and then we are waiting for a strength test of $56,000.
Technical Analysis Of BTC On The Daily Timeframe
Analyzing the price movement on the daily timeframe, it is noticeable that the strength of buyers is sufficient to continue the growth trend. During the growth of 22 January, buyers admitted weakness only on 2 February. However, it was because of this weakness that buyers set a trap for sellers, after which they organized a powerful growth wave that continues to this day. Trading volumes on the daily timeframe are average. That is, buyers did not need extra effort to change the direction of BTC price. If buyers can keep the $40,500-$42,000 mark, the first target on the way to the consolidation level will be $52,000.
Losing control of the $40,500 mark will send the price to the $39,000 mark. This is the maximum allowable mark for the continuation of the current growth wave. Therefore, at the moment you should not hurry and give sellers a chance to rehabilitate. It is the weakness of sellers in the future correction that will confirm the high probability of continued Bitcoin price growth.
Bitcoin Dominance Is Growing Rapidly
The Bitcoin price growth has attracted the attention of all cryptocurrency investors. If you look closely at the charts of altcoins, it becomes clear that all capital is now moving to Bitcoin. Other cryptocurrencies are growing rather poorly, which is alarming. If the BTC price starts to correct, altcoins have a better chance of falling. However, the very feeling of the bottom will allow other cryptocurrencies to catch up with Bitcoin on their price charts. Though, in the next 2 months, the Bitcoin dominance plans to grow. Given the fact that its price is growing, the global correction of the current wave of growth may not be. Why not? This is how the last fall wave from November 2021 fell.
