16 February 2021, 11:02

2 min reading

Crypto Daily: Bitcoin Breaks Out $50,000 Today; Its Dominance Will Grow

Bitcoin quickly jumped after falling on Sunday and rallied 5%. Moreover, the price has already set the new ATH at around $49,998. There is very little left before Bitcoin reaches the psychological level

Crypto Daily: Bitcoin Breaks Out $50,000 Today; Its Dominance Will Grow

The rest of the market also showed solid growth. Many altcoins have almost completely won back their fall and are preparing for a new round of growth. Will they be able to conquer new peaks or will Bitcoin not let them do it? Let’s figure it out.

Bitcoin

On the chart, the fall to $45,500 quickly gave way to growth and the chart has an upward structure. Yesterday we anticipated that if the chart fixes above $49,000 on the 4-hour timeframe, you can enter purchases. As we can see, this has already happened and indicates an imminent breakout of the $50,000 level.

Most likely, today we will see high volatility, which will facilitate a breakout upward. In this case, the price can go up to $54,000 very quickly.

We expect to see such a level because there are a lot of stop-losses of short traders above $50,000. In case of a breakdown of this mark, it will provoke the closure of these orders, which will fuel further growth. Most likely, this time we can see huge liquidations in the market that will exceed a billion dollars.

In the future, this will provoke a further increase in price up to $60,000, but first, you need to break through $50,000 today.

What to expect from altcoins in this case? Let’s take a look at the Bitcoin dominance chart first:

This chart clearly shows the slowdown in the fall of Bitcoin’s dominance. This means that the growth of altcoins may slow down. Most likely, this can last for 2-3 days, after which it will become clear whether the domination will break through the downtrend.

In addition, this logically fits into the fact that in the event of a breakthrough of Bitcoin upward, capital will actively withdraw from altcoins. At the same time, the price of altcoins relative to the dollar may rise, and relative to bitcoin — to fall.

Based on this, it is necessary to choose the right strategy. We stick with the option that Bitcoin will be the main dominant person in the next 2 days, and the altcoins will simply follow it. It’s still not too late to buy a bitcoin. Read more in our blog on how to buy cryptocurrency with your bank card within one minute.