Bitcoin’s most important level – 2 likely scenarios
Despite the general concern in the market, two charts are pointing to a breakout and a push towards all-time highs. Sheldon went through which levels must be regained for the bull run to continue, as Bitcoin ranged in a horizontal channel.
Bitcoin is trading in a horizontal channel between $46k and $52k after the huge pullback, which is ideal because the market has to cool down before making another major move to prevent another crash.
It’s also worth noticing that whenever Bitcoin drops to the range lows, significant green volume bars appear immediately after, showing that Whales and large entities are accumulating at discount rates.
The current range is an accumulation phase in anticipation of the market’s next major move. The low overall volume since last week’s dip allows Whales to strategically execute purchase orders with little volume to build up their holdings.
Bitcoin’s dominance has also improved, and a continuing upward reversal will favour a Bitcoin surge, as it has in the past. Altcoins may fall in value in the short term before profits return.
Bitcoin is expected to continue its sideways movement and accumulation phase as it approaches the resistance trend line, where a retest might ignite an upside rally.
Ethereum is currently resting on the back of a support and resistance flippening structure that it has followed for the past year and a half. The second most valuable cryptocurrency is hovering around its previous all-time highs, as it has in the past before a major increase.
One of the causes for the recent drop is the correlation between Bitcoin and the stock market. However, with the stock market rebounding and interest rates already priced in at around 5.3%, the worst-case scenario is that the stock market retests the recent drop trend line.
A number of companies – including Kusama (KSM), Cardano (ADA), Fantom (FTM), Terra (LUNA), Avalanche (AVAX), Polkadot (DOT), Render (RNDR), Dfyn (DFYN), Moonriver (MOVR), SuperFarm (SUPER), VeChain (VET), Tezos (XTZ), Zilliqa (ZIL), Polygon (MATIC) and Chainlink (LINK) – are all showing great purchase opportunities on higher time frames. Kilt Protocol (KILT) is a good purchase on lower time frames, but for all of these, investors are advised to use a dollar cost averaging strategy.
Bitcoin is ranging in preparation for a significant surge. The market is in good shape, and the bull market is still intact. Focus on portfolio rebalancing, moving out of shitcoins and moving into coins with solid fundamentals like those mentioned