Bitcoin (BTC) Technical Analysis: A New Growth Wave Or Rest Before a New Fall?

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As early as the 9th day in the Bitcoin market, buyers are waging successful battles, fighting for a chance. Today, the 9th daily candle has a great chance to close above the opening price. And by the end of the week, the range of  $40,600 may not hold up. However, will buyers be able to continue the confident BTCUSDT price growth without local correction, and what is the next price stop? We will try to answer these questions in this article.

Bitcoin Consolidation Is Under Threat of Breaking Up

From May 2021, the Bitcoin market, along with the entire cryptocurrency market, moved in consolidation. The main limits of consolidation are $29,000-40,500. In addition to these strong levels, from which the BTC price for 3 months bounces, we can also highlight the range of $34,000-35,000 — as the middle line of consolidation. This range is not powerful enough to expect a price reversal. Though, as local support during the initiative of buyers or sellers, the range of $34,000-35,000 copes well with the function of temporary support.

The trading volumes by which buyers are now trying to break the shackles of consolidation in the BTCUSD market continue to be consolidating. This fact shows that there is no excessive interest in buying at the moment. The probability of re-testing the local range of $34,000-35,000 remains quite high. Therefore, in such a tense situation as now, it is worth waiting for another effort of market participants. Having corrected to the range of $34,000-35,000 at low volumes and without aggressive red candles, buyers will receive an additional signal to buy with a final target of $48,000-50,000. In the case of a confident breakdown of the mark $40,600 up, we should expect a slight correction to the upper limit of consolidation. After which the uncorrected growth of Bitcoin will continue to the same target of $48,000-50,000. An important local critical point for this scenario is the mark of $38,000:


BTC Technical Analysis: Increasing Influence in the Crypto Market

The increase in interest in Bitcoin is evidenced by the chart of its dominance:

As we see, Bitcoin is starting to gain influence again and its rate is moving to 51-52%.

This fact confirms our main scenario of continuing the current growth wave to the range of $48,000-50,000. Nevertheless, it is too early to talk about the global positive in the Bitcoin market. As we can see on the daily chart, the price is successfully moving within the orange correction channel. In this channel, both the upper and lower trend lines and the middle line of the channel work perfectly. Therefore, the test of the range of $48,000-50,000 may provoke a new fall wave in the cryptocurrency market and the continuation of the correction. It is in this range that we should be as careful as possible with our long positions.


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