Bitcoin is approaching its all-time high: Why is $ 73,000 the next level to watch? Bitcoin is recovering from last week’s lows and is approaching $ 60,000 again.
The price of Bitcoin (BTC) experienced a correction in the run-up to the record options expiration last Friday. However, nothing happened even though many expected a massive move on the same day. The actual correction occurred before the event. On the same day, the price of Bitcoin bottomed out and started to rebound.
The current rally above $ 59,000 is being driven by bullish news from Visa and PayPal, as both are entering Bitcoin and cryptocurrency payments. In other words, the market is in the middle of the bull cycle and any correction is a boon for traders and investors.
The critical support zone remains to continue rising
As the chart above shows, the critical support area between $ 49,500 and $ 51,000 was tested last week. As support held, another higher low was recorded, resulting in renewed upward momentum, which is developing this week.
The entire structure since September is hugely bullish when the market broke above $ 12,000 and started to accelerate. The previous highest low was marked at $ 42,000, which then became the critical support area that needs to be held. As the price of Bitcoin did not even need such a strong correction this time, the recent low between $ 49,500 and $ 51,000 can be classified as the new higher low.
Therefore, the following points of interest can be established via the Fibonacci extension, where $ 73,000 and $ 92,000 become the next points of interest if the price of Bitcoin breaks the current all-time high at around $ 61,000. .
Total market capitalization looks bullish
Total market capitalization shows a similar test of support, as the $ 1.5 trillion levels were critical to sustain.
Given that the total cryptocurrency market capitalization survived that correction, it is very likely that it will continue to rise as the regions of the all-time highs will be tested.
If greater strength is demonstrated, the next upside targets for total market capitalization can be found at $ 2.2 trillion, which is also confirmed by the Fibonacci extension.
Bitcoin Dominance Chart Approaching Critical Zone
The Bitcoin dominance chart shows a critical breakout to keep rising. If the dominance falls below 60%, we can assume that there will be a sharp drop towards 50%.
It is not impossible for that to happen, as the summer period is usually very favorable for altcoins. 2020 saw big rallies during this period, and investors remember the summer of 2017.
History can certainly repeat itself once again, as many altcoin charts look bullish for breakouts against Bitcoin. Therefore, for the new altcoin season to occur, the price of Bitcoin must be relatively stable or rise slowly, which is the case today.
A possible scenario for Bitcoin
Bitcoin’s 4-hour chart shows a clear uptrend from its recent low at $ 50,000.
However, several critical support levels are being established during this rally. Currently, the important area to maintain is at USD 56,000. As long as that region holds as support, the market is likely to keep rising. This puts new all-time highs and potentially a price of $ 73,000 on the table.
On the upside, the critical area to overcome is shown in the red box, specifically $ 59,000 – $ 60,000. Until then, altcoins will likely continue to gain momentum, and even if Bitcoin hits new all-time highs, altcoins are very likely to follow suit.
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