Bitcoin (BTC) price surpassed critical levels at $ 35,000 and continued its trend above $ 40,000 on February 6, just days after MicroStrategy introduced Bitcoin to more than 1,400 companies.
That $ 35,000 break earlier this week was significant as it opened the door to retest the all-time highs. The final hurdle at $ 40,000 prevented BTC from hitting a new all-time high, while altcoins have hit many all-time highs over the past week.
In fact, the cryptocurrency market is becoming parabolic as most investors have seen a significant increase in their portfolio size. Yet, The DeFi alternatives rally in particular is at risk of overheating as momentum may return to Bitcoin with a BTC above $ 40,000.
Will the listing of Ether (ETH) CME futures change market dynamics next week or will Bitcoin continue to rise? Let’s take a look at the charts.
Bitcoin should break ultimate resistance before new all-time highs
Bitcoin’s 4-hour chart is showing a nice break above $ 35,000, leading to a healthy continuation towards $ 40,000. During that run, the $ 38,000 level gave a small setback but was not classified as a massive area of resistance.
The $ 38,000 level was tested during the Elon Musk pump as the price of Bitcoin dropped significantly on the same day. So, If Bitcoin broke above $ 35,000 again, it wasn’t surprising to see a continuation at $ 40,000 instead of another rejection at $ 38,000.
This $ 40,000 area is the final hurdle to overcome before making new highs. However, this new strength of Bitcoin means that its dominance is recovering at the expense of most of the altcoins.
Is Bitcoin Dominance Ready To Break Records?
The Bitcoin Dominance Chart is a beautiful chart that shows how market cycles work. In the past few years, Bitcoin’s dominance peaked in December, followed by a surge in Ethereum-led altcoins. This was accompanied by a significant decline in BTC dominance in January.
That trend was repeated this year as altcoins went parabolic and hit new all-time highs as Bitcoin consolidated within a range.
Each run ends, however, and the altcoins correct themselves. Historically, February saw a temporary low point, after which the dominance of Bitcoin increased somewhat. This increase in dominance would correspond to a possible correction in the price of ETH.
Ether CME Futures will launch on Monday, February 8th. After that, a correction should come as no surprise.. This is exactly what happened to the Bitcoin CME futures in December 2017. This list marked the high point of the bull cycle and the beginning of a multi-year bear market.
So, A correction for ether could also come with a return to Bitcoin, especially as Ethereum’s gas fees have hit absurd levels. This change would cause Bitcoin’s dominance to increase significantly.
What are the next hot spots for Bitcoin?
The daily bitcoin chart can be used to define the next goals for the bitcoin price. When the price of Bitcoin can exceed the USD 40,500 range, the following points of interest can be defined via the Fibonacci extension tool.
When you use this indicator, The most common Fibonacci level is the 1.618 Fibonacci level. At this level, the potential price target for Bitcoin is $ 50,000 once it breaks the recent high.
However, the price of Bitcoin has already recovered significantly in recent months. Therefore, a sharp break above the previous all-time high should be combined with a sharp change in support / resistance from that level. Otherwise a continuation of the area boundary construction is likely, as history shows.
Upstairs in the car Bitcoin price tried to break recent spikes (after halving) but failed to do so, resulting in greater reach. However, an obvious break above the all-time high above $ 42,000 should push the price of Bitcoin to $ 50,000.
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