Bitcoin appears to be rebounding from the past week’s lows and it is nearing $60,000 once more. The price of BTC saw a correction in the run-up to the record options expiry on March 26. Nevertheless, nothing happened in that context despite some analysts and commentators anticipating a major move on the same day.
The correction happened before the event and on the day itself, the BTC price bottomed out and started to rally. The latest rally to reach above $59,000 is believed to have been fueled by bullish news from PayPal and Visa as both are getting into crypto and BTC payments.
When put differently, the market is quite in the middle of the bull cycle and any correction is a huge and welcomed blessing to the traders and investors.
Key Support Zone Holds The Upside Trend
The market charts show that the crucial support area located between $49,500 and $51,000 was tested in the past week. Since that support held strong, another higher low was recorded which resulted in renewed upside momentum that is playing out this week.
Notably, the whole structure since September 2021 is majorly bullish when the market surged past $12,000 and began to accelerate. The last higher low was made at $42,000 and that zone became a crucial support area to hold.
As BTC’s price did not even need that heavy correction this time around, the recent low at $49,500-$51,000 may now be classified as the new higher low. Thus, the next points of interest can be made via the Fibonacci extension, where $73K and $92K become the next points of interest.
If the price of bitcoin breaks above the current all-time high at about $61,000, the flagship crypto will surge further.
The Total Market Cap Still Bullish
The cumulative market cap indicates a similar support test as the $1.5 trillion levels were crucial to hold. Since the total market capitalization of cryptocurrency survived that correction, more upside movement is possible as the all-time high regions will get tested once more.
If more strength is being shown, the next point to look out for in the total market cap space is $2.2 trillion, which is also suggested by the Fibonacci extension.
Bitcoin Dominance Nears Critical Zone
The dominance chart of BTC shows that there is a critical breaker for more downside movement. In case the dominance drops below 60%, an assumption can then be made that a steep drop will happen toward 50%.
That might not happen because the summer period is normally quite favorable for altcoins. Last year saw huge rallies during the same period, and investors remember the summer of 2017.
History might repeat once more as many altcoin charts are seeking bullish breakouts against bitcoin. Thus, for the altcoin season to happen, the bitcoin price must be relatively stable or even slowly grind higher, which is the case currently.
A Possible Case For Bitcoin
The 4-hour chart of Bitcoin shows that there is a strong uptrend since its recent bottoming at $50,000. Nonetheless, multiple key support levels are getting established during the rebound. For now, the important zone to hold is $56,000. Provided that this region maintains support, more upside movement might happen for the market.
Such a price action puts new all-time highs and possibly $73K on the table. On the upside, the crucial zone to break is shown by the red box in the chart above, particularly $59,000-$60,000. Until then, the altcoins might continue to gain some momentum, and even if BTC makes new all-time highs, altcoins might follow suit.