20 January 2021, 16:01
2 min reading
Bitcoin price dropped 3% yesterday and continues to fluctuate around the $35,000. Ethereum price almost reached all time high. Let’s take a look at the crypto market in general and understand what to expect over the next few days.
Bitcoin price dropped 3% yesterday and continues to fluctuate around the $35,000 mark. The slowdown of the Bitcoin trend is clearly visible — the activity of market participants, trading volume and daily volatility decreases. Besides, the last weekly candle closed with a red colour for the first time in a month.
On the contrary, Ethereum grow very quickly. Yesterday its price was as close as possible to ATH, not reaching only a few dollars. But the rest of the altcoins were mostly declining yesterday after their explosive growth on Monday.
Let’s take a look at the crypto market in general and understand what to expect over the next few days.
Bitcoin is still in the triangle and shows no clear signs of growth or decline. However, we can say that the exit from this figure should take place before the end of this week, but in which direction it will happen is unknown.
To be ready for this, in previous articles we told how to act — when the upper border is broken and consolidated there on the 4-hour timeframe, you can open long trade. Potentially, it can bring from 10% to 30% if Bitcoin does go down to $50,000.
A similar situation will occur when the lower border is broken. In this case, Bitcoin must be sold, since the price will first hit $30,000, and then can go down to the $24,000 — $26,000 range.
Bitcoin’s dominance in the market has already dropped significantly. At the beginning of the year, this value was 73%, and currently 65%. And this trend may continue in the coming days. Just before the moment when Bitcoin has to exit the triangle.
At the same time, it does not matter in which direction the exit occurs, Bitcoin in any case will begin to regain its dominance in the market, and the share of altcoins will decrease. At the moment, there are a few days for some of the altcoins to continue to rally, but you need to use stop losses so that potentially large losses do not affect you.
One of the strongest altcoins is Ethereum. Yesterday it broke through the last resistance level on the way to ATH and is gaining strength for a new leap.
The ATH breakout at $1,448 could happen today. This is indicated by MACD, which turned upward, and Stochastic, which fixed above the upper border. In case of a breakout, the price will not stop and will immediately go to the $1,500 mark, where a large number of sellers will be located. It is this level that is key for Ethereum this week.