Trader Identifies Key Support Levels for Bitcoin Price

The trader Ilya Meshcheryakov explains the current market situation.

For the crypto market, last week turned out to be mixed. On the one hand Bitcoin managed to break above and settle above $16,000; on the other hand, altcoins cannot boast the same positive momentum, and the dominance index of the first cryptocurrency has already exceeded 65%.

Bitcoin broke out of the ascending triangle to the upside and began forming a sideways movement with a support zone of $15,800-$15,900, previously serving as strong resistance.

This cannot be described as a 100% positive sign — typically, a breakout from an ascending triangle is accompanied by a more impulsive move, since the triangle itself acts as a zone of accumulation, and a breakout of the upper boundary lures hesitant buyers. We are seeing consolidation after the breakout of the upper boundary, which may indicate a trap to entice into long positions for a short-term decline.

Breached ascending triangle on Bitcoin with the highlighted support zone (green) and current range (blue). One-hour BTC/USDT chart from TradingView.

The current support zone has been tested several times and showed local buying strength — the only breakout did not exceed $150. After the latest bounce, the price also managed to move through the intermediate level of $16,122. Now all eyes are on the resistance zone around $16,400, near which the price stood at the time of writing.

BTC in sideways movement and its boundaries, along with the intermediate support level of $16,122. The 5-minute BTC/USDT chart from TradingView.

The altcoin market continues to weaken, despite positive shifts last week; even ETH and LINK, which formed a similar phase, fell below the triangle bounds. Overall, altcoins are taking on a degree of independence and are less dependent on the leading cryptocurrency. At the moment they can be traded quite autonomously.

Bitcoin managed to break above the upper boundary of the ascending triangle, but further development creates a mixed impression — the impulse was not very strong, but the bulls held the $15,850 level. The target of the figure remains the same — $17,500, but it is important to stay vigilant in case of a break of the current support zone.

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