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.