The current rally above $59,000 is being fueled by bullish news from Visa and PayPal, which have focused on bitcoin and cryptocurrency payments. In other words: The market is in the midst of an upward cycle and any correction is a blessing for traders and investors.
Critical support area holds for further upward movement
3 day chart BTC/USDT. Source: TradingView
As you can see on the chart above, the critical support zone between $49,500 and $51,000 was tested last week. After holding support, a new higher low was reached, leading to further upside momentum, which will be picked up in this small time frame.
The entire structure has been massively bullish since September, when the market broke above $12,000 and began to accelerate. The previous low was $42,000. The $8.5 billion in funding then became a critical issue to maintain. Since the bitcoin price didn’t even need that much of a correction this time around, the recent low of $49,500-51,000 can be considered a new higher low.
So the next points of interest come from the Fibonacci extension, at $73,000 and $92,000 if the bitcoin price breaks above the current all-time high around $61,000.
Total market capitalization appears to be increasing
total market capitalization crypto-currency 3-day chart. Source: TradingView
Total market capitalization was also tested on support, with the $1.5 trillion mark crucial to maintaining.
As the overall capitalization of the cryptocurrency market has weathered this correction, higher growth potential is very likely, with all regions reaching highs.
If the trend strengthens, the next points of interest for total market capitalization could be at $2.2 trillion, which is also supported by the Fibonacci expansion.
Bitcoin’s dominance graph is approaching the criticalrange
BTC dominance 3-day chart. Source: TradingView
The bitcoin dominance chart shows a critical break for a major decline. If the dominance falls below 60%, a sharp drop to 50% can be assumed.
That’s unlikely, as the summer months are often very good for marshmallows. There have been big rallies in 2020 during this period, and investors remember the summer of 2017.
History may be repeating itself again, as many alternative charts are predicting a bullish breakout against bitcoin. So to change the season, the price of bitcoin must be relatively stable or slowly rising, which is currently the case.
Possible Scenario for Bitcoin
BTC chart 4 hours. Source: View of the shop
The four-hour chart of bitcoin shows a clear uptrend since the recent low at $50,000.
However, several critical support levels are identified during this recovery. Right now, the important range to hold on to is $56,000. As long as this region remains favorable, the market should have more upside potential. This is a new record and a potential of $73,000.
On the other hand, the critical zone to cross is indicated by the red box, $59,000-60,000. Until then, altcoins will likely continue to gain ground, and even if bitcoin reaches new all-time highs, altcoins will likely follow.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Cointelegraph. Every investment and every stage of trading involves risk. You should do your own research before making a decision.
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