Trader outlines prospects for Bitcoin’s move to new highs

The trader Ilya Meshcheryakov explains the current market situation.

The cryptocurrency market continues to rise, but the emphasis has shifted almost entirely to altcoins: the Bitcoin dominance index has fallen to nearly 54%, after recently topping 60%. The volatility of the first cryptocurrency is very low, but consolidation near the all-time high presages a significant acceleration within the next week.

Technical picture on the four-hour chart for Bitcoin is positive — the coin managed to break through the resistance zone at $59,400, as noted in previous overview, and hold above it. The coin is consolidating near the all-time high, and the strength of downward pullbacks has weakened with each test, which often signals readiness to breach it.

In the long run, this implies a move toward roughly $69,000 — a price level justified by the height of the breakout pattern and by the analogy with a similar accumulation zone in the past.

Bitcoin has established ATH in 2021 in various ways: a small breakout followed by a pullback is often possible. Therefore, one should regard the interim level of $63,000 as the target for long positions.

Short-term dynamics of Bitcoin, as well as the local support zone (in green). Fifteen-minute chart of BTC/USDT on Binance from TradingView.

During this week, the dominance index may also rise. Bitcoin volatility, including that associated with reaching a new ATH, weighs on altcoins that prefer a calmer market. But a brief pause could reset overbought conditions and allow fresh potential for the continuation of the uptrend.

Long-term prospects for the flagship cryptocurrency remain bullish. In the short term, the price is more inclined to move downward to shake out open long positions.