After last week’s correction, market’s optimism has returned with a generalised upward movement that has seen a new attempt to the resistance zone in several tokens, as is the case of $BTC, which has generated a low and a rising high in the short-term trend that brings it back to the $24k-$25k zone.
This upward movement confirms the consolidation phase commented in recent weeks, after breaking $21k, but now the key is the $25k resistance zone. The 4h chart clearly shows the uptrend of the last month, but if we change the chart to 1d candlesticks we start to detect a bearish divergence in the RSI at this resistance zone.
This divergence is indicating that there is a lack of strong buying volume in this area, so bearish moves from resistance could be triggered to extend the accumulation phase. In this scenario, new highs could be created between $25k and $26k and rejected by the lack of volume in search of the support zone. But this situation may change if the buying volume increases and the price manages to break the resistance, in this case the next key level is at $28k-$29.5k.
This weekly move in $BTC has seen an increase of +10% and has been accompanied by a bullish move in BTC dominance, which unlike what we saw in $BTC, has not broken the yearly high recorded in January.
Despite the rise in dominance, we have seen some tokens outperforming $BTC. Tokens like $ICP (+34%) and $CRV (+27.50%).
The case of $ICP is one of the most impressive. On Friday it generated a bullish momentum with increasing volume that has managed to break the first resistance at $6. This break initiates a bullish replica movement that could stretch up to $10, the next key resistance zone, although the option of a pull-back to the broken resistance in the coming days cannot be ruled out.
On the other hand we have $CRV. The Curve token has once again tested the yearly high, but so far it has not managed to break it and is still far from the long-term resistance at $1.55.
If the price fails to break this yearly high set at $1.20 in the next few days, it is very likely that we will see some rejection looking for consolidation at the support zone.
Finally, remember that nothing discussed in our articles can be considered as investment advice. Everyone must do their own analysis and develop their own trading strategy. The BELOBABA team only shows analysis and investment tools, and how they help us in our operations when making decisions.