Bitcoin (BTC) price breached the crucial level of $ 40,500 as Tesla News added $ 1.5 billion of Bitcoin to its balance sheet. This news event pushed the price to all-time highs, and put the next major resistance level at $ 50,000.
Moreover, other cryptocurrencies are accelerating left and right as the scene is ideal for starting altcoins. All-time highs are set daily across many altcoins while Bitcoin is standardized. But how long will this unification last? Let’s take a look at the graphs.
Bitcoin price breaks the main resistance in Tesla News
The 4-hour chart shows a clear breach of $ 40,500, which was crucial to a further rally as Tesla news yielded the largest daily green candle ever for Bitcoin.
As the chart shows, the next level of interest is the psychological barrier around $ 50,000. It is also the next major Fibonacci level. The 1.618 Fibonacci level is often used as a crucial indicator to predict levels in price discovery.
Another important level to watch for Bitcoin is the block of orders around the $ 43,300- $ 43,700 region. The bullish trend is likely to continue as long as this area continues.
However, a sharp decline is likely if Bitcoin’s price cannot maintain this level. A drop in the $ 43,300 area to $ 43,700 will create a series of stop / loss triggers as Bitcoin price drops again in the range it has been in for several weeks. The next level of support can be found between $ 37,800 – $ 38,500 if $ 43,300 fails to hold.
A weak dollar is feeding the cryptocurrency market
The Dollar Strength Index (DXY) is showing weakness after a temporary low of 90 points. This bottom formation was marked by a bullish divergence, which resulted in a slight uptick. The rally ended at 91.60 points and made a full turn.
The primary question for DXY now will be whether the 90 pip level can hold. If so, the bullish divergence is still in play and a renewed test could take place at 92. Such a rebound is likely to dent the crypto market.
However, if the DXY index continues its downward trend, there will not be much to stop the cryptocurrency market from making higher highs and the BTC to reach $ 50,000.
The total market capitalization of cryptocurrencies is expected to reach $ 1.5 trillion
The total cryptocurrency market cap shows strength as it breached a previous high. Only a minor retest of $ 730 billion occurred, followed by an almost vertical move.
The Fibonacci Extension Tool now shows that the new point of interest is now $ 1.5 trillion, as the graph shows.
The question is whether the market is ready to continue from here to the next potential point of interest at $ 2.1 trillion. If the market corrects, which might happen if Bitcoin loses the $ 43300- $ 43700 level, traders should monitor the $ 1.05 trillion level for a potential bounce.
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