The consolidation in the UNI market is finally reaching its logical conclusion. After the growth impulse the UNI price has grown by 700% in about 2 months, buyers decided to take a break. The consolidation that began in February looks somewhat different than the previous one. The main fight between market participants is concentrated in the liquidity range of $34-38.
As we can see on the daily timeframe, at first buyers could not break this range. However, now the price is already above this range.
Total control over the range of $34-38 is the key to the success of UNI buyers
The last step from buyers to form a new powerful growth wave is to keep the range of $34-38 while sellers locally try to change the situation. At the moment, the chances of continued growth look much better. Though, it is worth considering the fact that the UNI price is very close to the global trend line, which buyers have been carefully protecting since December 2020. The upper trend line of the consolidation channel prevents the active updating of historical highs. The UNIUSD price stop in such an indefinite range can play a cruel joke in the current situation.
If sellers manage to hit the buyer’s stop orders, breaking the white trend line down, then the UNI price will very quickly test the range of $22-24. It may take only a few minutes. In our opinion, if you buy UNI in the range of $34-38, it is worth keeping a short stop. This trade will be considered as high risk. For a long-term purchase of UNI, it is worth placing orders in the range of $22-24.
UNIBTC price moves in a global wedge
On the UNIBTC chart, the price moves more technically than on the UNIUSDT chart. By the way, recently buyers managed to update the historical high. However, buyers were unable to fix above this range:
Now the UNIBTC price is consolidating below the historical high. Moving in a wedge, the UNIBTC market may start a 15% correction towards the white trendline. It is at this moment that investors who did not have time to buy this token will have a good chance to get into the last car. Thus, despite the positive background in the UNI market, it is worth paying attention to one more fact. BTC dominance is rapidly falling. At the time of this writing, it was reaching about 48%:
The last time BTCUSDT showed such a low impact rate was in July 2018. The new growth wave of Bitcoin dominance will negatively affect other tokens. Capital will again begin to flow into BTC, bleeding everything in its path. Therefore, in order to continue calm trading in the crypto market, it is worth waiting for a reversal of the dominance indicator and analyzing the reaction of altcoins.
