The last three trading weeks in the BTC market have depressed investors and crypto enthusiasts. In 2021, the Bitcoin price has fallen aggressively three times, which negatively affects the psychological state of investors. Increased volatility and intrigue at the end of the year confirm this theory. The last fall wave, which began in mid-November, is beginning to settle. Of course, this does not mean that this fall wave is coming to an end and ahead everyone expects only growth and only profit.
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However, the lack of strength to continue the fall wave is a crude allusion to preparing the BTC price for correction and rebound. The main target of this scenario is in the range of $56,000-$58,000. In the weekly timeframe, you can see the liquidity zone, which caused a new fall wave. It was this liquidity zone that sellers broke through with a weekly candle from 15 November and opened the gates for a new downward trend. In addition, the history of trading shows that this liquidity zone was the upper limit of consolidation in March-May 2021. We remember well what happened during this period. Therefore, the fate of the next medium-term movement of Bitcoin price depends on how buyers will behave in this range.
Technical Analysis of BTC in the Daily Timeframe
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21st December is a big day for buyers - a chance to break the protracted two-week consolidation up. On the chart, we see that recent attempts by sellers to update local lows have gone through major problems. As the trading volumes did not increase since 17 December, sellers stopped updating local lows and the initiative was intercepted by buyers. Now the BTC price is on the upper trend line of the consolidation channel. If buyers can break this trend line up, we will expect the price to continue growing to $53,000. This mark is a local target, and it is not possible to easily correct the BTC price to $49,000. If after this correction buyers keep the mark of $49,000 at this time it will be great to enter into a medium-term investment with an end target of $56,000-$58,000. If buyers fail to break the $49,000 mark during the current attack, the critical point will remain in the $45,000 range.
The BTC Dominance Continues to Fall
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Since October 2021, Bitcoin dominance is steadily declining. Globally, in the weekly timeframe, we see that this figure has been consolidating since May 2021. While this figure is in consolidation, other cryptocurrencies have some will and ability to express themselves. Thus, during the BTC price fall, other cryptocurrencies could not resist and their prices also fell. Though, every day we notice that different cryptocurrencies can show good upward impulse, at a time when the BTC price has not yet been determined by the vector. Thus, if the Bitcoin dominance growth does not begin, it will be a favorable factor for the growth of other cryptocurrencies.