After a week of consolidation, BTC, this week, breaks out from its sideways trend and currently trading above its psychological resistance of 50K. On the weekly TF, BTC formed a strong bullish candle which slightly resembles a Hammer Candlestick patter and gained by more than 6%. At the time of writing, BTC is trading at 52K.
BTC has been trading in the Rising Channel formation for the past 7 weeks and has been respecting its lower band supports as every dip has resulted in a strong bounce back, it depicts that there is solid buying pressure is present at lower levels. Daily RSI is showing slight divergence with the price and has been facing a trendline resistance, which suggests a mild correction can take place in the coming weeks and with that it will retest its support zone of $50 to 51K.
On the higher side, the immediate hurdle is present at 53K followed by the major resistance at 55K. On the lower side, the support levels have been shifting higher with the rising trendline. The nearest support is present at 50K followed by 48K.
As compared to other top 10 crypto assets, BTC has been lagging in this rally till now but with this fresh breakout, one can expect that BTC may lead the pack this time. Also, the combined crypto market cap is now more than $2.35 Tr but still, the BTC’s market cap dominance is trading around its lower levels which suggests that we can expect a bounce-back in BTC M cap dominance.