KuCoin Weekly Technical Overview: Can Bitcoin’s Current Momentum Drive the Prices to $60,000?

2021/10/11 10:13:33

The entire crypto market is back with some momentum to the upside, as the long-term players have begun to buy into the market. Out of no surprise, the Bitcoin market was the first crypto to make a move north. Despite the pressure coming from the sellers every step of the way, the demand surpassed the supply – price action shows.

However, it seems like the bulls have not switched into the altcoin market as of yet. With BTC touching the $55,000, altcoins are heading up accordingly, but as laggards. Bitcoin has breached its recent resistance from a technical perspective, while altcoins are yet to do so.

Bitcoin Price Update

The buyers are buying into BTC at higher and higher prices. Consequently, the price trajectory of the world's largest cryptocurrency has inclined upwards after a long period.

After getting rejected at $52,000 at the beginning of September, the price plummeted significantly, putting the market into a downtrend. Throughout the downtrend, the consolidation came in between $44,000-$48,000 and $41,000-$44,000. Although the buyers did show their strong presence in the consolidations, the price ended up heading for lower lows.

After reaching $41,000 for the third time in a row, the buyers took charge and reversed the market’s direction. Starting from $41,000, the price headed up to $48,000 smoothly, without attracting bears along their way. Surprisingly, they did not stop at $48,000 and continued to make another high at $55,000, again with compelling momentum.

Currently, Bitcoin has been holding at the same $55,000 level for almost a week, as some altcoins have been pumping lately.

Bitcoin Dominance Bounces Off Lows

The market cap BTC dominance has been on a roller-coaster in the past few months. As BTC and altcoins have inconsistently outperformed, the trajectory of the market cap dominance has been moving to range sideways. After maintaining grounds over 65% in 2020, BTC’s market cap dominance sunk below 50% in 2021. And to date, the dominance has not surpassed the 50% mark – showing buyers’ interest in altcoins.

On the flip side, the dominance has bottomed out at 40%. Despite the outperformance of altcoins in early 2021, BTC’s dominance held strong above 40. During market plummets, Bitcoin saw the least damage, which helped it climb up to 47.5%. But the recovery game being stronger in altcoins, took the dominance back to lower levels.

Speaking of the recent trend, BTC has taken support for the second time at 40% and is rising higher. Since mid-September, the market cap BTC dominance has gained by 10% from the lows. Currently, the dominance is maintaining at 44%, which is relatively at higher levels due to the BTC market shooting to the upside. Based on trends, the dominance can get back to 48% before the altcoin market takes over and plunges it down again.

Bitcoin Market Cap Dominance | Source: TradingView BTC.D

BTC Trend Remains Intact

Going back to March 2021, the BTC set its resistance around $58,000. Despite several strong attempts from the buyers from higher lows, the market failed to breach above the resistance. As a consequence of the bulls deteriorating, the market plunged to a low as $30,000, a potential support level where the buyers were expected to accumulate. As anticipated, the market did play out the same way and took major support at this low.

Later, as the accumulation came to an end, the BTC market moved to the north, which took the prices all the way to $50,000. In technical terms, this move can be regarded as the first impulsive push of the buyers. Now that the uptrend was getting in play, it is obvious to expect a higher low before the market continues for its next push. In BTC, the price took resistance at $52,000 and dipped to almost $42,000.

After dropping in the form of a typical downtrend with lower lows and lows highs, the market began to slow down at $42,500. This level was potentially a strong demand zone as it was previously above a long-held resistance. The market happened to maintain grounds at this support despite the momentum being on the sell-side.

The consolidation at the support level was quite important because it is essentially a game-changer for the upcoming direction of the cryptocurrency. But, as the buyers evidently took charge of the demand, the market shot up compellingly.

In a matter of a week, the market rose over 38%, much higher than BTC’s weekly average.

Bitcoin Price Chart on the Daily Timeframe | Source: BTC/USDT

As of writing, the market is trading at $55,200, with the momentum slowly dying out. Given the current price action, there are a couple of possibilities – price holds at the same level and dips for its next retracement. Or, the second impulsive push continues and trades up to higher timeframe resistance at $58,000. Stay tuned and watch the KuCoin Blog for the follow-up articles related to this topic. All the best!

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