Bitcoin price managed to reach its all-time high price of USD 42,000 only to retrace back and enter a sideways trend. Most cryptocurrencies were affected by this small pullback, while many other coins are shooting higher than BTC. With a lower market dominance of 67%, altcoins were seen as better alternative investments. What happens to Bitcoin prices now? Will we witness a long-term consolidation or will prices move higher?
Bitcoin Price Prediction – TA plotting a consolidation area
In a previous article, we predicted a scenario 2 where prices will manage to consolidate:
In this scenario, buyers will help push prices and keep them strong above the 30K psychological price area. Prices will fluctuate between USD 31,500 and USD 40,000 giving traders major opportunities to day trade and benefit from a sideways trend, until buyers defeat sellers, thus pushing prices above 40K and continuing the uptrend.
After a week of predicting this area of consolidation, here we are witnessing this sideways trend in figure 1 below.
What can we expect post-consolidation?
Well, Technical Analyses are usually helpful in setting the right entries and exits when trading markets. In this specific case, seeing that prices are consolidating between support and resistance levels, we recommend following the below:
- If you already hold BTC below USD 31,500 prices, you are safe in this phase
- If you are thinking of entering the market, you can enter a buy position and set a stop-loss around that support area of USD 31,500 (preferably lower)
- If you prefer to wait and see price confirmations before entering the market, you can wait for a price of USD 40,000 breach accompanied by high volatility. In this case, you can buy around that price area and set a tight stop-loss.
Consolidations in prices were recently seen as bullish signs, where prices take breathers before continuing their journeys upwards.
The Cryptocurrency market as a whole
In the past 24 hours, the cryptocurrency market was seen mostly higher except for Bitcoin, which is currently consolidating in prices as discussed earlier, hence that market dominance dropping to 67%.
1- Bitcoin (BTC) : – 0.97 %
2- Ether (ETH) : + 0.17 %
3- Tether (USDT) : 0 %
4- Polkadot (DOT) : + 18.37 % (surpassing XRP)
5- Ripple (XRP) : + 0.69 %
6- Cardano (ADA) : + 13.25 % (surpassing LTC)
7- Litecoin (LTC): + 0.95 %
8- Bitcoin Cash (BCH) : + 0.92 %
9- Chainlink (LINK) : + 22.52 %
10- Stellar (XLM): + 2.32 %
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