Key Points:
- Bitcoin’s price is at an important price point to make traders consider.
- If there is a drop near $25,000, this will help attract more investors who missed out on the opportunity to participate.
- BTC.D drop near resistance will be an opportunity for altcoins season.
The market has been quite quiet for the past few days as Bitcoin (BTC) stopped rising at $28,000. If in the near future, the price of BTC will suddenly increases or decrease, how will the crypto market react?
Bitcoin is gradually taking over the money of the market as the inflow of money into it increases. Meanwhile, altcoins have been slow to catch up. BTC’s bullish performance has reached more than 25% over the past year, with a trading volume of nearly $15 billion per day.
The reason for its winning run, however, might be linked to the continuing US financial crisis, which has caused some clients to lose trust in conventional institutions and instead resort to crypto trading. The big price increase of Bitcoin demonstrates this. If not for this event, the stepping stone above $25,000 from last year would still be challenging for BTC.
Also, according to the observed data, currently, Bitcoin dominance (BTC.D) is reaching its key resistance area. If a correction to the $25,000 price zone just breaks out and continues to rise again, it is very likely that the altcoin season will come back strongly. At this time, BTC.D will drop, and the money flow will return to large-cap altcoins like Ethereum, BNB, and XRP.
However, it should be noted that the liquidity of BTC is showing very low, meaning that the big sharks are lying dormant and waiting for a strong rally or price drop.
Bitcoin’s price surged upward last week, triggering a tremendous tailwind for practically all crypto- and altcoins.
BTC will fall, but support should be close by. A 10% dip towards $25,000 would be an excellent opportunity for bulls who were late to join the rally to do so now. Take a close look at this price zone because if it is broken by volatile news like SVB, it is very likely that the trader’s profits will be liquidated.
And if it breaks through 30,000, a relatively round number, this will no doubt indicates a fresh start to the uptrend. However, that process still has to wait for future factors to support it.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Harold
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