The previous trading week in the BTC market ended with the closing of the candle at $47,241. Buyers tried to keep the BTC price and did not allow to update the low of the previous weekly candle. Trading volumes last week were average. While bitcoin stood still, other strong altcoins, such as AVAX, FTM, C98 showed good growth waves.
However, even these altcoins already had noticeable weaknesses and insufficient strength to continue growing over the weekend. The vast majority of altcoins were waiting and consolidating. But, a new trading week in the cryptocurrency market has added color to the current picture. In two days, sellers lowered the BTC price by 15%, collapsing the entire cryptocurrency market.
Our main scenario, which we talked about in the previous analysis, worked out well and the price tested the mark of $40,000. The main question at the moment is whether buyers will be able to keep this mark to start a new growth wave?
A New Growth Wave
In the weekly timeframe, we see that after a powerful fall wave in May, buyers have organized a new growth wave. This wave is more like a correction for two reasons. First, local growth since the end of July has been on average volumes. Secondly, during the current fall wave, there is no interest of buyers to keep the price. It seems that buyers have completely capitulated and are waiting for a specific price range for revenge. With the growth wave from July, buyers corrected the fall impulse by 61.8%. If buyers do not show their strength in the range of $40,000-$42,000 – we will expect global consolidation in the BTC market with the final fall target of $31,000.
Bitcoin Technical Analysis on the Daily Timeframe
Though, it is worth considering a positive scenario for the BTC market.
After breaking the upper limit of depressive consolidation in the period from May to July up the Bitcoin market began an active phase of growth. Today, 21 September, sellers tested the upper limit of the previous consolidation in the range of $40,000. If over the next few days buyers can keep this mark, the cryptocurrency market will likely start a new growth wave. The critical point of this scenario will be around $44,000. By taking control of this mark, buyers will again be able to attack $52,000.
BTC Dominance Is Not Growing
Analyzing the BTC impact on the cryptocurrency market, we notice that although other altcoins are still dependent on Bitcoin, hold up quite well. So after the BTC price fall on 20 September, altcoins suffered well. However, they bounce more actively and form reversible formations for a new growth wave. This fact tells us about the faith of investors in the continued growth of the cryptocurrency market. Therefore, it is too early to talk about the total collapse of the market, and it is worth waiting for a good moment for a new wave of investing in the cryptocurrency market.