Bitcoin resumes corrective movement, market dominance collapses

After a one-week sideways phase, there is currently a corrective movement in the Bitcoin price. The BTC dominance also corrected to a new annual low after re-entering the downward trend.

Bitcoin (BTC): Bitcoin rate

BTC course: 56,578 USD (previous week: 58,080 USD)

Resistance / goals: $ 57,214, $ 58,466, $ 59,431, $ 60,100, $ 61,694, $ 62,248, $ 64,061, $ 68,450, $ 70,000, $ 77,678, $ 84,603, $ 89,982, $ 110,739

Supports: $ 56,867, $ 55,817, $ 54,077, $ 53.005, $ 51,307 / $ 50,893, $ 50,327, $ 49,423, $ 48,222, $ 47,070, $ 44,878, $ 43,030, $ 41,970, $ 40,407, $ 39,130, $ 37,910, $ 36,097

Price analysis based on the value pair BTC / USD on Coinbase.

Buy Ethereum: explained quickly and easily

Do you want to buy Ethereum but don’t know how? We will help you choose the most suitable provider for you and explain what you should pay attention to!

To the guide >>

The crypto reserve currency is still not making sustainable progress and has oscillated between USD 56,870 and USD 60,000 since the previous week’s analysis. The longer this sideways phase lasts, the stronger the breakout from this trade range will be. During this analysis, the support was already retested at USD 55,817. Should Bitcoin exit below USD 56,867 today, support at USD 55,817 threatens to be abandoned. Below this support, the downward movement should gain momentum and the BTC rate should correct towards the orange support area. This bearish scenario is underpinned by a fresh sell signal from the MACD indicator.

Bullish scenario (Bitcoin price)

On this Wednesday morning, April 7th, the Bitcoin price is trending weaker and threatens to fall again below the EMA20 (red). If the bulls manage to stabilize the price of the crypto reserve currency at the daily closing price above USD 56,867, a new rise in the red resistance area is conceivable. If the Bitcoin price can quickly regain the resistance at USD 58,466 and dynamically overcome yesterday’s high at USD 59,431, another attack on USD 60,100 is likely. Only when Bitcoin can stabilize above the weekly high at USD 60,100 will the all-time high at USD 61,694 come back into focus. The upper Bollinger Band, which now also acts as a resistance, runs just above the all-time high at USD 62,248. Only when the Bitcoin price can sustainably break through this resistance should a subsequent rise to the 200 Fibonacci extension from the hourly chart at USD 64,061 be planned.

A dynamic break of this resistance level should bring the BTC rate up to $ 68,450. This is where the 200 Fibonacci extension of the higher-level trading movement runs. If the Bitcoin price breaks through this resistance level, a rise to the psychological USD 70,000 is likely. A larger sell position has been in the order book here for weeks. The BTC rate should therefore initially bounce off to the south. If the Bitcoin rate can then stabilize in the area of ​​USD 70,000 and does not fall back below its current all-time high of USD 61,694, an increase towards USD 77,678 can be expected as a result.

This resistance level arises from the monthly chart. Should Bitcoin also be able to overcome this level of resistance, a subsequent increase of up to USD 84,603 is conceivable. This is where the 261 Fibonacci extension of the higher-level trading movement runs. Only when the BTC price stabilizes sustainably above this price level there is further potential for increase up to the 461 Fibonacci extension from the hourly chart. This projection runs at the $ 89,982 USD. If the Bitcoin price rebounds significantly below this level, a correction towards USD 77,678 can be expected. If the key crypto currency then picks up speed again northwards, Bitcoin could even set its sights on the maximum price target for 2021. This runs at 110,739 USD and is derived from the 361 Fibonacci extension of the higher-level trading movement.

Bearish scenario (Bitcoin price)

The seller side was able to avert a breakout above the psychological USD 60,000 again. At the time of this analysis, Bitcoin is threatening to leave its sideways range of the last few days. If the Bitcoin rate falls back below USD 56,867 at the end of the day and also falls below the weekly low of USD 56,480, the EMA20 (red) would also be below again. A relapse to $ 55,817 must then be planned. If the bears can generate enough selling pressure, a consolidation up to USD 54,077 is increasingly likely. The upper edge of the orange support area runs here. If the Bitcoin price dips into this zone, the supports at USD 53,005 and USD 52,626 are the first price targets. At the moment, however, increased resistance from the bull camp can be expected at these price marks at the latest. However, if the orange support zone is clearly undershot, the next price target is activated in the form of the blue support area. This runs between USD 51,350 and USD 50,893.

The lower Bollinger Band and the supertrend in the daily chart can be found in this strong support area. In addition, the last noticeable low is at USD 50,327. As a result, investors will increasingly make new purchases here again. If, on the other hand, the USD 50,327 per day’s closing price is undercut, the Bitcoin price should correct immediately to USD 49,423. Here is the 127 Fibonacci extension of the current upward movement. If the bears manage to push the Bitcoin price further, Bitcoin will break further into the dark green support area between USD 48,222 and USD 47,070. If the bulls cannot stabilize the price decisively in this area either, the chances of a correction widening to USD 44,878 increase. A relapse to the low of 43,030 USD must also be planned. A stabilization at this support level can be expected in the short term. As long as Bitcoin does not quickly rise back above USD 48,222, another wave of correction should cause the Bitcoin exchange rate to correct in the range between USD 41,970 and USD 40,407.

A directional decision must be planned for at the latest at USD 40,000. If this psychological mark is also sustainably undercut, and the USD 39,130 ​​does not provide any support either, the correction will expand into the range between USD 38,500 and USD 37,910. Again, clear resistance from the cops can be expected here. Investors will try to quickly push the BTC rate back above USD 40,000. If, on the other hand, the USD 37,910 is broken dynamically, the USD 36.904 will come into focus as the first relevant target price. For the time being, Bitcoin should correct a maximum of up to USD 36,097. Here you can find the EMA200 (blue) in the daily chart. The bullish investors will want to avoid giving up this sliding support as much as possible, otherwise another crypto winter could loom.

Bitcoin dominance: false breakout causes market dominance to collapse

Bitcoin dominance based on values ​​of Cryptocap shown

After weeks of trading in a narrow range, there has been a significant correction in the past few trading days. The market dominance of the crypto reserve currency fell back into the downtrend channel and then corrected significantly. Yesterday, Tuesday, April 6, 2021, the BTC dominance slipped to the first strong support level at 55.72 percent. Based on this support level, there is currently an initial bullish backlash. The BTC dominance is currently listed at 57.72 percent and thus again above the purple support area.

BTC Dominance: Bullish Scenario

The BTC dominance failed to defend the strong support of the last few weeks at 60.28 percent. As a result, the price fell back into the downtrend channel and also gave up the green support area at 58.80 percent. Only at the 55.72 percent was there a countermovement which led to dominance over the purple resistance zone between 57.53 percent and 57.20 percent. If the BTC dominance can regain this area in the long term, a new test of the cross resistance at 58.80 percent should be planned. Only when the dominance of the crypto key currency can sustainably break out of this strong resistance from the horizontal resistance line and the upper edge of the trend channel, a retest of the 59.64 percent is possible. The EMA20 (red) can currently be found in this area. Even if the BTC dominance can overcome this price level in the short term, it is only at the 60.28 percent that it is decided whether a renewed increase to the old strength is possible.

Should the dominance break through this central resistance by the daily closing price, the 61.62 percent will first come into focus. The current supertrend can also be found here in the daily chart. If the BTC dominance can gain momentum again, a march into the red resistance area between 52.62 percent and 63.00 percent would also be conceivable. The EMA200 (blue) is currently at 63.00 percent. Only when this sliding resistance line is overcome dynamically does the chart light up significantly. Should this massive resistance zone be broken dynamically in the course of a significantly rising Bitcoin price above the all-time high, an increase of up to 64.19 percent but at least up to 63.53 percent is realistic.

Should the Bitcoin dominance break through this resistance zone sustainably, an increase in the yellow resistance zone should be planned. In particular, the 64.75 percent was of great importance in the past. If the yellow zone can also be overcome on a daily basis, a subsequent increase to the maximum ascent target of 65.57 percent is possible. As already mentioned several times in the last few weeks, the current strength of many altcoins makes it increasingly difficult for the crypto reserve currency to return to its old market dominance.

BTC Dominance: Bearish Scenario

For now, a decision has been made regarding the market dominance of Bitcoin. After re-entering the trend channel, the BTC dominance fell significantly to the south and marked a new annual low. As long as the BTC dominance does not rise back above 58.80 percent and a maximum of 60.28 percent, further taxes are to be expected. In the short term, the 58.80 percent area decides whether Bitcoin will continue to lose dominance or at least initiate a new attempt to increase. If the BTC dominance remains below the purple support zone between 57.53 percent and 57.20 percent, a relapse to the weekly low at 55.72 percent is likely.

If this central support line is clearly undercut by the end of the day, the BTC dominance will continue to decline towards 53.17 percent. The trend channel lower edge and a strong support level from 2019 are found at this cross-support. The low of April 4, 2019 is also just below that. If the BTC dominance does not stabilize at this support level either, the maximum correction target moves in the area of ​​the orange support zone the look. For the time being, the range between 50.88 percent and 50.01 percent is to be regarded as the target range for the current correction.

Disclaimer: The price estimates presented on this page do not constitute buy or sell recommendations. They are only an assessment of the analyst.

The chart images were created using TradingView created.

USD / EUR exchange rate at the time of going to press: 0.84 euros.

BTC-ECHO Magazin (4/2021): Is it worth investing in NFTs?

The industry magazine for Bitcoin and blockchain investors.

Exclusive top topics for a successful investment:

• NFT: between hype and substance
• FLOW: The new NFT king?
• Taxing mining properly
• 2021 is so bullish
• An interview with the Bundestag

Order the free copy >>