With the low volume and little movement from the crypto markets, we were expecting a sudden price movement from BTC that will be with great significance compared to the last 7 days.
The price per one BTC has risen 2.81% today. Does this mark a new optimistic trend for the markets or this move can hold danger for the bulls? Let’s see what the charts can say.
BITCOIN
BTC closed its last week candle on the green but that only happened in the last hours until the close. During that last 7 days we saw moves to both up and down but predominantly lower ones.
This week BTC has went through a number of selling orders before hitting a resistance zone between $29 200 – $29 500. In these circumstances it is difficult to indicate the buying and selling power of traders, as the volatility has risen. That means that any support and resistance can be broken through without a sign in the price of the asset.
We can see that with the Selling Order Block that we indicated in the last analysis, the Monthly Open level and the 2021 Yearly Open level. BTC long buyers managed to rip through all these levels without a confirmation on them from the price. That is why the markets can be considered with unpredictable volatility.
The current major support of BTC remains at the Buying Order Block zone. Orders have not moved since the pump, which proves that traders are not confident in changing their positions on the market.
BTC is currently located at a resistance zone. If we see a move to the upside again, the next major resistance for BTC is between $31 600 – $32 500.
The pump in price of BTC was caused mainly for the attempt to keep the momentum bullish. That can be seen with the price bouncing from 21MA on a Daily chart that was marked in the previous analysis.
Looking forward to trade BTC on levels accordingly. The upward parallel channel further proves that the next level for the price to reach is at the top of it – $30 400. Not being able to reach this will still mean that BTC is slowly losing the momentum needed. Remember: upward parallel channels have the tendency to play out with the price breaking down from the indicator.
BITCOIN DOMINANCE
Strangely to some, even though BTC pumped today the other currencies did not follow with even half the pace. That is caused by the BTC Dominance or said in a simpler way – the % of all the money in the crypto market that is located in Bitcoin.
Seeing a reversal from this position and breaking above the resistance area will mean even more volatility in BTC. That essentially is not beneficial for altcoins, as a move down for BTC will cause a cascade in their prices. Monitoring BTC Dominance closely.
SOLANA
SOL is an example of the BTC Dominance effect. Since the pump we have not seen that much increased volume in the asset.
The price did support from the Weak Support Area and that was with the help of the BTC pump. Currently, the price has been rejected by the Short Term Resistance zone that was marked in the previous analysis too.
Looking forward to seeing more discounts in the crypto market. It is still possible that we see the altcoins catch up to the BTC movement, so that is why it is important to map out crucial levels and trade accordingly.
LINK FOR THE BITCOIN CHART HERE!