Veteran analyst Peter Brandt says this level is of “tremendous importance” for Bitcoin ⋆ ZyCrypto
After performing moderately well in April, despite all the FOMO and regulatory scares, Bitcoin entered May with its head down, falling over 5% in the first half of the year on Monday, May 1St.
Over the past six or so weeks, the largest cryptocurrency by market cap has struggled to push above the $30,000 resistance area despite showing a lot of strength in the first week of April, when such a price has been trapped in a tight Hug.
Various market experts have attempted to project Bitcoin’s behavior this month, even as the cryptocurrency’s fundamentals continue to improve. According to experienced market analyst Peter Brandt, Bitcoin currently has a “tremendous level of significance”. On Saturday, Brandt noted that the price had reached the upper band of an area pattern, and said that a decisive break out of a certain area could significantly affect Bitcoin’s future.
According to Brandt, today’s range pattern suggests that there is a certain price level that Bitcoin has struggled to surpass over the past two years. However, if Bitcoin breaks above this level, it could signal a major shift in the market.
“The containment zone has been in place for some time now, but a decisive outbreak would have a major impact, he said, adding “My bias is that Bitcoin will bury all pretenders eventually. There will only be one ‘King of the Hill’ and that will be Bitcoin.”
And Brandt is not alone in his analysis. Caleb Franzen, a research analyst at Cubic Analytics, also noted that Bitcoin needs to decisively break out or be rejected at the current range before he can make any major decisions.
“People are predicting that Bitcoin dominance will skyrocket. Here’s my opinion: I don’t know yet b/c we haven’t seen a decisive breakout or rejection in this area. Once we get clarity around this major resistance level, I will listen to what the market is telling me,” Franzen tweeted Sunday.
Today, crypto expert “Titan of Crypto” shared a Bitcoin % Dominance chart, forming a monthly “W bullish structure”. According to him, the structure suggests that dominance may soon break out of the area. He further noted that if April’s monthly candle closes above the range (as it has), Bitcoin’s dominance could increase, and with it price. However, he warned that once Bitcoin’s season starts, “everything may suffer a little bit.”
Meanwhile, as the week kicks off, some analysts expect Bitcoin to wobble further due to the upcoming Federal Open Market Committee (FOMC) meeting on Wednesday, which is likely to raise interest rates by 25 basis points.
At press time, Bitcoin was trading at $28,110, down 4.45% in the past 24 hours, according to CoinMarketCap data.
