Over the last 24 hours, Bitcoin has increased by 3% and now sits at just above $42,000. Meanwhile, this didn’t affect the trading volume, which remained almost unchanged. But yesterday, the Bitcoin market dominance decreased to 42.5%. This suggests that altcoins performed better than the first cryptocurrency.
Let’s take a look at the Bitcoin chart and try to understand whether we can expect it to grow in the near future:
The chart is still moving sideways between $36,000 and $45,000. However, in the past few days, buyers have seized the initiative. The price of Bitcoin went up by 13% from the local bottom and approached the middle of the sideways channel in the 41,500 – $42,400 zone.
At the same time, the chart has formed an ascending triangle, which indicates the predominance of bulls as well. This pattern is also known as the “bowl with handle” figure. In this case, the resistance level is $42,640. If the price breaks this mark and consolidates above it, Bitcoin may rise to at least $45,000.
We have just noted that this mark was a key resistance level. Along with that, based on the above-mentioned patterns, Bitcoin may soar to $47,640 after the breakout, thus adding $5,000 to its value. Now, this scenario seems to be the most possible, as the general market conditions have begun to change.
In addition, we expect to see a few slowdowns around the $45,000 level. This is due to the fact that the 200-day moving average line comes in this zone. As a rule, this indicator points to a current market phase. The price has tried to break this level twice already, but failed, so we are waiting for an increase in trading volumes and volatility to occur here. The further medium-term movement of Bitcoin and other cryptocurrencies highly depends on who will finally dominate the market, bulls or bears.
However, the market has entered an uptrend. Buyers are watching the first cryptocurrency again. We also notice that the influx of funds into altcoins is now increasing. All this can be considered a positive sign for short-term growth.