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BTC – down the spiral already or just a consolidation ? for BITSTAMP:BTCUSD by FutureBlockchain

Hello all,

BTC failed to break above the upper boundary of the $56,000 – $59,500 range and is currently trading even below the $56k level. The move prevented the biggest cryptocurrency from reaching the March high at $61,100, which brings some painful memories of the 2017/2018 market reversal.

Let’s have a look at the 4-hour chart from December 2017/ January 2018

Bitcoin failed to close above the second highest peak on the chart, thus confirming the bullish structure break, eventually making a lower low

We are in a very similar situation nowadays, but the BTC /USDT pair is still stable above 21-day EMA on daily and with the potential to make another leg up come week end as it might as well stabilize at $56,000 and turn it from resistance to support.

If we zoom out to the weekly timeframe we will also see that the 21-day EMA , which is one of the best trend-supporting indicators is well below the price level and BTC is looking a lot more stable here, when you look at it from long-term perspective and with less noise.
It is struggling in a $57,500-$59,500 resistance area , but with the potential to confirm a bullish engulfing candlestick pattern if it closes in green.

Also, the recent price fluctuations look a lot more like simple trend consolidation in the long-term uptrend corridor. Is the super cycle ahead or we are in for a great disappointment ?

One more thing, the BTC dominance is on its lowest point since July 2018, which can be analyzed in a few ways:

1. We are already in a bear market and alts are making their last run just like they did in the last bull cycle when BTC was already in red, paving the way for Crypto Winter.

2. BTC is slowly loosing its market leader status and will give way to Ethereum , eventually fading out as a useless “safe haven”.

3. We are in the middle of the bull market cycle. Somewhere near July 2017 when BTC crashed down to 37% dominance and alts were already flying. This will be in line with the market consolidation on the weekly timeframe

Cheers

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