Bitcoin (BTC) underwent a correction due to the expiration of the registry option last Friday. However, nothing happened, despite the fact that some were expecting a big move on the same day. The actual correction took place before the accident. On the same day, the bitcoin price bottomed out and began to rise.
The ongoing rally of more than $ 59,000 is fueled by growing news from Visa and PayPal that involve Bitcoin and cryptocurrency payments. In other words, the market drops heavily in the middle of a bullish cycle, and any correction is a boon for traders and investors.
Critical support zone maintains growth potential
3-day BTC / USDT chart. Source: TradingView
As you can see from the chart above, a critical support range between $ 49.5 million and $ 51,000 was tested last week. As support was maintained, other lows were posted higher, renewing the bullish momentum that led to this happening.
The whole structure has been very optimistic since September as the market has broken above $ 12,000 and started to accelerate. The previous high was $ 42,000, which then became a critical support area to hold. Since the bitcoin price did not need such a radical adjustment this time around, the recent $ 49,500-51,000 drop could be classified as a new higher low.
Hence, the following important points can be identified by the Fibonacci extension, as $ 73,000 and $ 92,000 will be the next points of interest if the price of Bitcoin exceeds the current high of around $ 61,000.
The total market capitalization looks optimistic.
3-day chart of the total market capitalization of cryptocurrencies. Source: TradingView
The total market cap shows a similar test of support that was needed to maintain the $ 1.5 trillion level.
Since the total market capitalization of cryptocurrencies has weathered this correction, the upside potential is likely to be a test of the high time zones.
If more strength is demonstrated, the following interesting points can be found for a total market cap of $ 2.2 trillion, which was also confirmed by the Fibonacci expansion.
Bitcoin dominance pattern is approaching a critical area
BTC dominance chart for 3 days. Source: TradingView
The Bitcoin dominance chart reveals an important clue to more disadvantages. If dominance falls below 60%, then a sharp drop of about 50% can be expected.
This is unlikely to happen as the summer period is often very favorable for altcoins. In 2020, there were large clusters during this period, and investors are recalling the summer of 2017.
History could definitely repeat itself as charts for many alternative currencies look optimistic about the outbreak against bitcoin. Hence, at any time of the year, the price of bitcoin must be relatively stable or rise slowly, and this is currently the case.
Possible scenario for bitcoin
4-hour BTC chart. Source: Tradingview
Bitcoin’s 4-hour chart shows a clear bullish trend since its recent low of $ 50,000.
However, during this return, several important levels of support were established. At the moment, there is $ 56,000 in an important area. As long as the region maintains support, the market is likely to have more upside potential. So a new full-time employee appears on the table, and perhaps $ 73,000.
The uptrend shows a critical area for a breakout with a red rectangle, especially $ 59,000 – $ 60,000. Until then, altcoins are likely to continue to gain traction, and while Bitcoin is making constant highs, altcoins are likely to follow suit.