Trader identifies the most likely next target for Bitcoin.

The trader Илья Мещеряков explains the current market situation.

Last week proved positive for the entire cryptocurrency market. Bitcoin broke through the $11,000 mark, but even more notable was the rally of the altcoins — Ethereum rose by more than 40%, and this is not even a record among all coins.

In the previous briefing I noted signs of possible growth, though I remained cautious. At present, bolder bullish scenarios can be considered.

BTC, finally, broke out of a long accumulation phase. It took nearly three months for the market to push through the sideways range of $8,600-$10,000. And the fact that the breakout occurred to the upside may indicate a fairly strong subsequent price rise.

Global accumulation zone (blue) with marked horizontal boundaries. The four-hour BTC/USDT chart from TradingView.

One can draw an analogy with a similar accumulation zone in duration and width. From this, the potential price move could be around $3,000. A similar accumulation zone: from 9 June to 12 November 2018 (marked on the chart below). These zones have much in common — besides width and duration, also formation in the middle of the trend.

Current accumulation zone (blue on the right) and its comparison with a similar one (left, blue) with the zone boundaries and resistance levels for the current price highlighted. Daily BTC/USDT chart from TradingView.

Based on this, the first target level for BTC could be $13,000. Intermediate targets are $12,300 and $13,100. Bitcoin does not tend to corrective moves after exiting accumulation zones, so one should be wary of declines of more than $1,000.

The altcoin market paused after the surge, and capital is now flowing back into BTC. The Bitcoin dominance index had fallen below 61%, but is now around 63%. The same pattern may unfold over the course of the entire uptrend — a gradual rise in the price of the first cryptocurrency, followed by a rally in the altcoin market, and then an acceleration of BTC’s growth with a correction in other coins.

As for BTC’s support levels, these are currently only $10,000 and $10,500, which had acted as resistance and were breached earlier. Given the price breakout from the channel, there is a high likelihood of continued rise to $13,000.

Subscribe to the ForkLog channel on YouTube!