The trader Ilya Meshcheryakov explains the current market situation.
Bitcoin continues to rise and in just a few days has again reached the previously outlined targets in the region of $18,800–$19,000. But the most interesting developments are in the altcoin market — Bitcoin’s dominance is waning, while individual coins have gained more than 50% in price.
After several pullbacks, prices are pressing against the resistance zone. This is a sign of bullish sentiment in the market, as it indicates growing buying pressure at higher prices.
“Compression” of the resistance zone (marked in red) in the $18,800–$19,000 range. Five-minute BTC/USDT chart on Binance from TradingView.
Breakout of the resistance zone could give a push toward levels around $20,500 — roughly the height of the current formation. At these prices, the most interesting thing begins – we will witness a situation where any Bitcoin buyer in its history at any price would be in profit.
Some have waited for this for about three years and may start taking profits, including moving funds into altcoins that are only just beginning their rally. Large capital will also fulfill its global task and attract new investors.
From a speculative standpoint, a stop near $20,000 is a contentious decision. A new all-time high should be such as to make the boldest forecasts credible, but not so expensive as to be prohibitive. Subjectively, such levels are around $23,000–$24,000.
But one should not forget that at the time of publication Bitcoin was trading below $20,000 and the upside scenario could be invalidated by a break below $17,400, the lower bound of the current consolidation.
In the short term, downside impulse could provoke movement below $18,360 — upon triggering stop orders placed below the support level and the trend line.
Levels and the short-term trend line, with the red zone highlighting the proposed buyer stop orders. Five-minute BTC/USDT chart on Binance from TradingView.
When talking about the growing altcoin market, one should note the low-base effect – many coins were very cheap at the start of the rally, so any inflow of capital gives them a significant impulse. Bitcoin, however, has taken a breather, but remains headed upwards with the next target around $20,500.
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