It now appears that the current bullish rally in Bitcoin (BTC) prices is almost unstoppable as BTC reached a new high on 17 February.
The $ 50,000 psychological barrier was finally broken on Tuesday after repeated tests at this level last week. In addition, banks are showing interest in BTC, and several public companies are starting to use Bitcoin, and the first German company is revealing its position today.
Now the high can be as high as $ 63,000. Meanwhile, altcoins are experiencing some pain in Bitcoin pairs as a result, while Bitcoin’s dominance is gaining momentum again. The main questions are whether Bitcoin will be able to withstand this rally, and whether altcoins in their BTC pairs will decline.
Bitcoin continues to tumble after reaching critical levels
The Bitcoin price has risen in recent weeks, creating some potential support areas in the event of a reversal.
After breaking over $ 40,000, the $ 43,000-43,500 range quickly became a new level of support as a springboard for further gains.
The chart above shows that this continuation is seen as an increase in BTC towards the next point of interest. This range is at the 1,618 Fibonacci level around $ 50,000. This important level is also an important psychological barrier. The Bitcoin price has broken this resistance area and is currently trying to rise.
The critical range to look at now ranges from $ 47,250 to $ 48,000. As long as you maintain it, the bitcoin price can continue to fluctuate between $ 54,000 and $ 55,500.
Important Fibonacci levels to watch out for from the Bitcoin price
Daily Bitcoin chart shows the next exciting points if the rally continues. During this sky-high price increase – given that Bitcoin’s current price is 150% above the all-time high in 2017 – the Fibonacci expansion tool is useful for identifying the next important levels to look at.
The first Fibonacci level of 1,618 has been reached, and the second is the Fibonacci level of 2,618. If the Bitcoin price continues to rise, it is expected to rise from $ 63,000 to $ 66,000 while retaining $ 47,000- $ 47,750, as mentioned earlier.
Bitcoin’s dominance is improving
Bitcoin’s weekly dominance chart shows a clear overview from the top level in December 2020. Historically, Bitcoin dominance peaks in December, after which altcoins begin to rally in January and February.
This is exactly what happened in January until now in February. However, after such an animal, it is very likely that altcoins will be corrected. Bitcoin pairs of these altcoins should now see a period of consolidation for some potential reversals of support / resistance.
However, Altcoins may face a retreat if BTC continues to rise. In other words, the value of altcoins in US dollars may remain the same, but relative to BTC they will decrease in value. Traders and investors should be aware of this phenomenon in the cryptocurrency market. It is very possible to make a strong adjustment for altcoin-BTC pairs, especially if the Bitcoin price reaches the next target of $ 63,000.
The most important level of Bitcoin
The 4-hour chart for Bitcoin shows a critical level to look at. Once again, the range between $ 47,250 and $ 48,000 is a must for price increases. If this level fails to support support, there is likely to be a major correction, possibly for the next major support range between $ 43,000 and $ 44,000.
For bulls, $ 55,000 and possibly $ 63,000- $ 65,000 will be the next targets if the BTC price continues to rise.