The last trading week gave the Bitcoin (BTC) market participants positive and hope. The unsuccessful attempt of sellers to update the low on 19 May gave birth to a new local growth wave. The closing of the daily candle on 8 June by the pin bar and the lack of sufficient trading volumes when the BTCUSDT price fell instilled confidence in people. In fact, since 9 June, buyers have been keeping the initiative in the BTC market and a very important moment is happening now.
As we can see on the daily timeframe, buyers managed to get to the important liquidity zone of $39,000-40,000. This range is considered the upper consolidation limit, where the BTC price has been since mid-May. It is the consolidation above this range that will allow buyers to realize our main scenario, which we wrote about in the previous article.
Fixing above $40,000 will open the way for Bitcoin market to $46,000
If we analyze the struggle for the range of $39,000-40,000 on a shorter timeframe, it becomes clear that the breakout of this liquidity zone upwards took place at medium volumes:
In addition, buyers did not manage to continue the BTC price growth without problems after breaking this range upwards. Thus, we will expect in the next few days an attempt from sellers to bring Bitcoin price back into the consolidation range. The next medium-term movement in the cryptocurrency market will depend on whether sellers manage to realize all this. At the moment, sellers do not show much desire for the beginning of a new fall wave. The critical point is at $38,600.
BTC influence falls – altcoins come alive and catch up
If we analyze the BTC dominance chart, we can see that during the test of the range of $39,000-40,000, the influence of Bitcoin falls:
It seems that while the BTC price has stopped in an important zone, investors are starting to buy altcoins. The strongest of them made good bounces upwards (for example MATIC). By the way, on 10 June, we recorded a video broadcast, where we analyzed 10 crypto coins and their potential purchase zones.
An alternative scenario of the BTC price movement. If the BTC price breaks through the range of $39,000-40,000, we will expect a local fall of the BTC price to $33,500-34,100. In this range, we are happy to buy this coin.