After a generally quiet week in the cryptocurrency market, Bitcoin (BTC) started the day with an upward trend. The crypto king surpassed $29,500, albeit briefly, with a trading volume of $12 billion and a market capitalization of $572 billion. This price movement in BTC triggered an overall increase in the cryptocurrency market, with Ethereum (ETH) rising 1.3% to $1,876 in the past 24 hours, XRP rising 2% to $0.71, and Binance Coin (BNB) rising 1.8% to $242.
The Bitcoin price seems to be ready to retest the $30,000 seller congestion zone. The rise is supported by the level of around $29,000, which has been effective in preventing drops to $28,000 and $25,000. The ongoing uptrend could be attributed to oversold conditions on lower timeframes, and the Moving Average Convergence Divergence (MACD) indicator may soon provide a buying signal. However, investors are waiting for a potential bullish crossover, especially when the blue MACD line on the daily price chart crosses above the red signal line.
If the Relative Strength Index (RSI) starts to rise from the neutral zone (30-70), it will provide further confirmation that the uptrend has begun. It may be wise for investors who want to buy to wait until Bitcoin finds support above the 50-day Exponential Moving Average (EMA) (red) at $29,367. With a breakout, the price could strengthen in an upward direction, increasing buying pressure as investors confirm that a rise above $32,000 and potentially $35,000 is underway.
Famous cryptocurrency analyst Captain Faibik reported that Bitcoin will likely reach $32,000 first, then retrace downwards by 15-20% in the coming weeks. The price chart shared by the analyst indicates that Bitcoin will rise above $30,000, slow down near the strong resistance at $32,000, and then experience a pullback to $25,000.
Furthermore, the Bitcoin dominance, which has fallen by 8% since the beginning of the month and 27% since April, indicates another negative outlook. This decline was triggered by investors shifting their focus towards altcoins, especially after the partial court decision in favor of Ripple in the United States.
Moreover, offshore cryptocurrency exchanges have been most affected by the decline in BTC trading activity. The published Kaiko report suggests that this may be due to an increase in altcoin volume in South Korea. The report states, “Since the beginning of the year, the BTC dominance has dropped by 20%. Altcoins have gained momentum on U.S. exchanges over the past month. This indicates that regulatory pressure has not yet reduced the demand for altcoins.”
On the other hand, there has been a small increase in altcoin liquidity since the beginning of the month, measured by a 1% increase in market depth. The market depth for the top 10 altcoins has increased by approximately $20 million.