Bitcoin eyes $50K less than a month after BTC price broke its 2017 all-time high


Bitcoin (BTC) price breached the crucial level of $ 35,000 and continued to rise above $ 40,000 on February 6, just days after MicroStrategy offered Bitcoin to more than 14,000 companies.

This break above $ 35,000 earlier this week was significant as it opened the door to a new test ever. A recent hurdle at $ 40,000 kept BTC from an all-new high, while several all-time highs were created by altcoins over the past week.

In fact, the cryptocurrency market is parabolic as most investors have seen significant increases in their portfolio sizes. However, the rally in DeFi alts, in particular, is at risk of overheating as momentum may swing back to Bitcoin as BTC returns in excess of $ 40,000.

Moreover, will the Chicago Mercantile Exchange (ETH) futures list change market momentum next week, or will Bitcoin continue its rally? Let’s take a look at the graphs.

Bitcoin should break the final resistance before new all-time highs

4 hour chart XBT / USD. Source: TradingView

The 4 hour chart of Bitcoin shows an impressive breakout above $ 35,000, resulting in a healthy continuation towards the $ 40,000 mark. During this range, the $ 38,000 level gave a slight rejection but was not categorized as a huge resistance area

The $ 38,000 level took its test during Elon Musk’s pump, as Bitcoin’s price rebounded dramatically the same day. So, if Bitcoin breaks through $ 35,000 again, it is not surprising that we see a continuation to $ 40,000 rather than another reject at $ 38,000.

This $ 40,000 zone is the last hurdle to break before new all-time highs. However, this new strength in Bitcoin means that its market dominance recovers at the expense of most altcoins.

Is Bitcoin’s dominance ready to explode?

Bitcoin dominance chart for a week. Source: TradingView

Bitcoin dominance chart is a nice diagram that shows how market cycles work. In recent years, bitcoin topped the dominance in December, followed by a rise in altcoin led by Ethereum. This was accompanied by a significant drop in BTC’s dominance in January.

This trend has been repeated again this year with altcoin trading parabolic, reaching all-time highs with Bitcoin standardizing into a range.

However, each half ends, and altcoins will correct. Historically, a temporary low was seen in February, after which bitcoin’s dominance rose slightly. This rise in dominance will be in line with a possible correction in ETH price.