Bitcoin was able to continue its rally, rising to last year’s high of $ 13,858. BTC dominance can benefit from this bullish move and continue to rise as well. However, a sale on the global financial market due to rising Covid-19 numbers has allowed the BTC rate to be significantly corrected in the last few hours.
- Bitcoin rate: $ 13,239 (previous week: $ 12,198)
- Resistances / Targets: $ 13,858, $ 14,805, $ 15,814, $ 16,262, $ 17,187, $ 17,810, $ 19,882
Price analysis based on the value pair BTC / USD on Coinbase
The key currency Bitcoin has not stopped and rose significantly northwards this week as well. On Wednesday, October 28th, the BTC price hit the 2019 annual high of 13,858 US dollars. First investors are currently taking profits. The BTC price drops around $ 600 in the last hours of trading and at the time of this analysis is standing at $ 13,223.
The current consolidation of the BTC rate is not surprising after the rally in recent weeks, and in the medium term, it is very healthy for a sustained rise in the key currency. It is now important for the bulls that the BTC rate does not slide below $ 12,492. From this level, renewed attempts to climb towards US $ 13,858 can be expected. If the bulls can dynamically break this mark higher than the daily closing price, the chances of a march towards the next price target of 14,805 US dollars increase. If the price of Bitcoin then stays above 13,858 US dollars, further subsequent increases in the direction of 15,814 US dollars and a maximum of 16,262 US dollars are to be planned. As long as investor interest continues unabated, there are 17,187 US dollars and 17. $ 810 other possible target areas. Only a significant break in these resistance levels would pave the way towards the all-time high of $ 19,882.
The bears are currently trying to build up some selling pressure. If the BTC price slips below the first important support at 13,198 US dollars, this would be the first sign of life for the bears. A first proper consistency test can be expected at $ 12,492. Increased resistance from the bull camp can be expected at this support at the latest. Only when the BTC rate slips well below this key support do the chances of an expanded rate consolidation improve. If the bears manage to break through the 12,492 US dollar daily closing price, a relapse to 12,307 US dollars and 11,806 US dollars must be planned.
If these two supports are consistently undershot and the US $ 11,500 also drops, the breakout level at US $ 11,099 will come back into focus in the coming weeks. In this area, bullish investors are likely to come back again and try to stabilize the BTC price. If the bears can win the battle for this chart mark and dynamically push the BTC price back below $ 11,099, the current price rally would be over for the time being. As long as the Bitcoin price can defend this mark, BTC prices can be expected to continue to rise in the medium term.
Bitcoin dominance based on values from Cryptocap shown
The dominance of the reserve currency can also increase this week. Bitcoin dominance took advantage of the breakout and rose above the cross-resistance at 62.02 percent from horizontal resistance and EMA200 (blue) after a brief bearish spike on October 21. The BTC dominance is currently listed at 63.15 percent and is already trying to overcome the resistance at 63.24 percent.
If the BTC dominance can also break through this chart mark by the daily closing price, the first target price is 64.03 percent. If this resistance is also overcome, the yellow resistance area at 65 percent should be planned as the next target. If the key currency manages to overcome the previous year’s high of 13,866 US dollars in the coming days and thus further expand its market outperformance, a bullish rally to the targeted price target of between 65.57 percent (horizontal resistance) and 66.20 percent ( overall downtrend line) likely.
If, on the other hand, the Bitcoin price rebounds significantly towards the south and the bears start a new attempt to sell, the Altcoins could steal dominance from Bitcoin again. If the altcoins manage to develop stronger than Bitcoin again in the coming days and push the BTC dominance back towards the EMA200 at 62.02 percent, the chances of a counterattack by the altcoins increase. If the BTC dominance falls below this key support at the daily closing price, a new test of the breakout level at 60.58 percent is to be expected.
Only when the dominance falls below this chart mark at the daily closing price, however, is a possible bearish reversal in the room. If the BTC dominance subsequently also gives up the green upward trend line over the long term, the cross-support comes back into focus at 59.64 percent. If Bitcoin should fall back towards 12,000 US dollars in the coming days, a new test of the important support level at 58.80 percent is possible. However, this bearish variant should still only be viewed as an alternative scenario. As long as the BTC dominance can stabilize above 62.02 percent, a further increase in dominance can be expected in the medium term.
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