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Analysis: Expect This Scenario To Happen Before Bitcoin Continues Its Rise!

Source: https://bit.ly/3wAEchz

The Bitcoin (BTC) accumulation phase increases as each weekend market crash is followed by another week of accumulation and some recovery.

The top cryptocurrency has been moving in the $30K to $40K price range for nearly two months now.

With Bitcoin still dominating the market at more than 45%, crypto analyst CrediBull Crypto suggested that the uptrend is not over yet.

This analyst predicted a scenario where Bitcoin would first reach a new all-time low in market dominance before going up.

Bitcoin market dominance is currently at 45.1% and fell to an annual low of 39% in May.

Earlier, the analyst said that if Bitcoin’s dominance drops below 30%, people should start taking their profits.

Bitcoin Dominance / TradingView

The second week of selling last May that wiped out nearly a trillion dollars from the cryptocurrency market was when dominance was at an all time low.

During the end of the 2017 uptrend, the dominance fell below 35 which triggered a broad sell-off, and it will need further lower this time to trigger another sell-off, ending the uptrend.

Bitcoin (BTC) Struggling to Break the Price Range ($40K):

Bitcoin price has been consolidating under $35,000 for the majority of the past two months, sometimes testing the $40,000 resistance multiple times.

Bitcoin started this week with a major breakout above the $35,000 resistance and nearly touched $36,000, but as on many previous occasions, it failed to consolidate above support.

Bitcoin price fell below another major support level at $33,000 yesterday to gradually recover and is currently trading at $33,679.

Bitcoin needs to maintain its next major support of $30,000 to avoid a sell-off.

Many analysts believe that Bitcoin is currently in a similar phase to the market seen during mid-2017 before the last bullish run began.

However, on-chain data indicates that the perpetual funding rate has remained negative since mid-May, and buyers are a little reluctant to enter into long Bitcoin positions.

Source: Glassnode

Analyst Mike McGlone, chief commodity strategist at Bloomberg, expected the bullish season to resume again and see another price hike in the second half of 2021.

McGlone stated:

What will happen to the price of Bitcoin is that it will be near $100,000, Crude Oil $50.

The perennial trends are that Bitcoin is poised to resume the bull market and Crude Oil is on its downtrend, with profound macroeconomic implications, in our view.

The standard digital asset represents rapid advances in technology and downturn.

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