Bitcoin course crashes and lets the overall market collapse

The key currency Bitcoin (BTC) follows the correction on the financial market and falls by more than 1,400 US dollars on a weekly basis. The dominance of BTC tends to continue below the 60 percent mark.

The risk of an expansion of the correction was already discussed in the last analysis . The price setback back below the moving average of the last 20 days (EMA20) (red) at 11,580 US dollars caused further strong losses in the Bitcoin price this week. At its peak, the reserve currency fell by more than 12 percent to the 9,823 US dollar and worked off the 61 Fibonacci retracement. The bulls can currently avert at least one further slide in the price and stabilize Bitcoin above the psychological $ 10,000 mark.

Bullish scenario (BTC)

The Bitcoin course is currently trading in a key area. If the investors get the courage again and buy the Bitcoin back at the daily closing price above the resistance at 10,535 US dollars, the chart situation eases noticeably. Above the US $ 10,553, there are renewed opportunities to increase towards the US $ 10,697 and US $ 10,800. If the bulls manage to overcome both of these obstacles, a subsequent rise to the US $ 11,099 is likely. In order to rise again in the direction of 12,000 US dollars, the price of Bitcoin Superstar must first return to the trend channel. The 78 Fibonacci retracement at $ 11,572 is also in this resistance area. Only when this resistance is overcome dynamically and the 11,806 US dollar is also breached is another attack on the maximum price target at 12.

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As long as the RSI and the MACD indicator have activated sell signals, the bears still have a clear advantage. If the bulls fail to jump over the resistance at $ 10,585 in a timely manner, there is a threat of a further setback towards the weekly low at $ 9,820. If this price mark is broken down and the EMA200 (blue) at 9,700 US dollars does not stop, a price slide to 9,502 US dollars is likely. If the Bitcoin rate falls below this key support at the daily closing rate, the consolidation is likely to expand to $ 9,083. The bulls should try to initiate a new rise in this area at the latest. If the bears manage to undercut this important support by closing the day, further rally fantasies will suddenly be buried. A bearish dissolution of the blue sideways trend channel should be seen as pointing the way for the coming weeks. Further price setbacks of up to 8,793 US dollars or even 8,504 US dollars are then inevitable.

The dominance of the key currency Bitcoin was able to defend the previous week’s low of 58.80 percentage points. For the time being, however, investors did not manage to overcome the key resist at 62.02 percent. The BTC dominance is currently trading below its moving average for the last 20 days (EMA20) (red). For the time being, the dominance can prevent another fall, as long as no higher high above the 62 percent mark can be formed, another setback is conceivable at any time. As long as the BTC dominance does not manage to overcome the last high at 62.02 percent per day’s closing price, another setback towards the sales low at 58.80 percent is conceivable at any time.

Bitcoin Dominance: Bullish Scenario

On the other hand, if the bulls manage to break through the resistance at 62.02 percent and also break through the cross-resistance from Supertrend and EMA100 (yellow) at 62.90 percent on a daily basis, the horizontal resistance at 63.24 percent comes into focus. If this resistance can also be overcome by the daily closing price, the strong resistance waits at 64.03 percent. Only when investors manage to break through this resist sustainably will the moving average of the last 200 days (EMA200) (blue) at 64.26 percentage points come into focus as the first target price. If the yellow resistance range between 64.58 percent and 65.07 percent is overcome with a resurgent Bitcoin, there would be room for the maximum price target at 65.57 percentage points. An increase above this range is not expected this week either.

Bitcoin Dominance: Bearish Scenario

If the BTC dominance falls back towards the annual low of 58.80 percent in the coming days and undercuts this price mark at the daily closing price, the consolidation expands to 57.50 percent. If the BTC dominance cannot turn northwards in a sustainable manner and gives up this support, another price slide up to the cross support at 53.16 percent must be planned. This support level continues to represent the maximum price target on the bottom. If the BTC dominance falls unexpectedly due to this crucial support level, a further decline of up to 50 percent cannot be ruled out.

Conclusion and outlook: Bitcoin price falls back below important breakout level

The bears hit back this week, pushing the BTC rate back significantly to the key support at $ 10,000. This ends the rally of the last few weeks for the time being. As long as the bulls fail to move the price back above $ 10,535, another setback towards the $ 9,500 is conceivable at any time. Only when investors heave the Bitcoin back over $ 11,100 are there good chances of a retest of the $ 12,000. The correlation of Bitcoin with the classic financial markets can now be observed closely. If the indices continue to consolidate in the coming days, further falling prices on the crypto market are to be expected.

Disclaimer: The price estimates presented on this page do not constitute buy or sell recommendations. They are only an assessment of the analyst.