Bitcoin Price Evolution Analysis 05.01.2022
by CSM TRADER
Nº498
BTC price U$ 46.824.
USD/BRL price R$ 5.67.
Price EUR/BRL R$ 6.41.
Price Gold 1g R$ 331.21.
Good morning to all readers.
BTC dominance :
Historic lows in BTC dominance could mean that an altcoin season unlike any before is potentially ahead. Here is a closer look at the metrics that compare Bitcoin to the rest of the crypto space and how this may impact altcoin performance.
At one point, there was only Bitcoin . As the industry grew, a metric called BTC dominance was born that made the weight of the top coin compared to the rest of the market clearer.
Prior to 2017, Bitcoin accounted for up to 95% of the entire cryptocurrency market, but fell to 35% less than a year later during what is considered the longest altcoin season ever recorded.
After reaching such extremes in 2018, by 2020 Bitcoin had regained more than two-thirds of its market capitalization. Dominance peaked near 70%, where it reversed dramatically throughout 2021.
With a decisive close at high time periods, patterns of lower time periods may provide clues as to where dominance may come to an end once again.
But all of this could come at the expense of Bitcoin and its undisputed reign as the number one cryptocurrency in market value.
The price of Bitcoin is still in an uptrend above the $47,750 price area and just above the 100 EMA (H1).
The Bitcoin price in past sessions after having managed to follow through with positive advances above the $46,500, $47,000 and $47,500 price areas, came to fail for the 3rd time to positively advance above the EMA 200 (H1) or even above the $47,600 price area, even testing the $47,524 price area.
Now at the time of writing, the Bitcoin price is tracking above the U$ 46,814 price area.
Bitcoin price needs to hold above the 100 (H1) EMA for further consolidations to take place, and move on to the 4th attempted breakout of the 200 (H1) EMA; and will still need to hold above the Ichimoku Cloud.
If the Bitcoin price fails again to move forward positively and open a new candle and it holds above the EMA 200 (H1), the negative corrections will come back strongly to the $46,500 and $46,000 price area, where again a retest of the $45,600 price area could happen.
If Bitcoin's price goes to reste again in the U$45,600 price area, negative corrections this time could follow below U$45,500 and U$44,780.
Only above the 100 and 200 EMA (H1) for the Bitcoin price to break out of a risk area of the negative corrections' turns to below $46,220.
Buyers remain in control of the situation, but need to follow through with further consolidations above the 100 (H1) EMA or even above $46,666 in order for them to make a positive advance above the 200 (H1) EMA.
If buyers fail in these positive advances with the Bitcoin price above $47,500 and $48,000, sellers will regain control of the situation where they will create the downside below $46,500 and $46,000, and may go for the breakout of $45,500 again.
Major areas of Resistance - $47,000, $47,500 and $48,00.
Major Support areas - $46,500, $46,120 and $45,666.
H4 chart :
The price of Bitcoin is above the 5 and 20 EMAs, but below the 50, 100 and 200 EMAs and below the Ichimoku Cloud.
The Bitcoin price needs to be able to continue with positive moves above the EMA 50, where it has already tried for 3 times to make positive moves above it, but without success so far.
The EMA 50 is quoted in the $47,300 price area; if the Bitcoin price fails again to open a new candle above the EMA 50, the downside corrections this time could be much stronger and go for the breakout attempts at $45,600 and $45,120.
Only above the EMA 50 and with further consolidations for the Bitcoin price to attempt the necessary positive moves above U$47,666.
Follow the buyers with the Bitcoin price with the consolidations above the EMA 5 and 20, and continue in the attempts to keep the Bitcoin price above them, which will be of extreme importance for the next sessions.
The chart in H4 will follow the whole week to have a parameter of the Bitcoin Price Evolution. Only some adjustments will be made.
Resistances: U$ 46,950 // U$ 47,372 // U$ 47,746 // U$ 48,116.
Supports: U$ 46.500 // U$ 46.176 // U$ 45.829 // U$ 45.469.
https://www.tradingview.com/x/4Tlp8FXb/
H1 chart :
Bitcoin price follows above the EMA 20, 50, 5 and slightly above the EMA 100 and above the Ichimoku Cloud, however it follows below the EMA 200.
It will be of utmost importance for the Bitcoin price to continue consolidations above the EMA 100, so that it moves for the 4th time to attempt the breakout of the EMA 200, or even above the $47,306 price area.
If the Bitcoin price fails again, the downside corrections could come back below the EMAs and below $46,500, where a stop above $46,000 will be of utmost importance as below this price area the downside corrections could get stronger for the possible break of $45,500.
Only above the EMA 100 for the Bitcoin price to break out of a risk area of the negative correction turns.
Follow the buyers in their attempts to keep the Bitcoin price above the EMA 100.
Resistances: U$ 46.985 // U$ 47.271 // U$ 47.595 // U$ 47.890.
Supports: U$ 46,610 // U$ 46,323 // U$ 46,050 // U$ 45,802.
https://www.tradingview.com/x/ve1jw0zt/
Dominance: 40.37%.
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Nº 498
