Although Bitcoin has been repeatedly rejected from the $ 48,000 resistance, it does not give up the fight. It fell from the $48,200 test to $45,500 over the weekend. Targeting $50,000, these moves fail for the third time since August 13. Now, for BTC traded at $ 46,200, we examine the 5 items that analyst William Suberg pointed out for this week. Let’s start with the altcoin market and season…
Falling BTC dominance gives hope for alt season
In the past hours, Bitcoin has increased by 8% in the last 7 days, while most major altcoin projects have recorded a directly proportional performance. Many of the top 50 cryptocurrencies by market cap saw weekly returns of over 20%, with Solana (SOL) leading 60% on Monday. With this rise, hopes have multiplied that the DeFi market is fueled and marks the start of an altcoin season. As a result, Bitcoin’s market cap dominance at 43.7% is also declining despite its strong performance, revealing the potential for altcoins to enter Q4.
Overcoming the $48,000 resistance in Bitcoin (BTC)
Bitcoin tested the $48,000 resistance multiple times in August. His last attempt this week also picked up sharp momentum on Saturday at over $47,000, but the failure ended at $45,500 intraday. He then returned to the starting level with his last move on Sunday. In this regard, analyst Michaël van de Poppe warned that “Bitcoin needs to reclaim $46.5k” before the latest upswing is confirmed. Poppe’s price expectation after this level is as follows:
If that happens then I assume the highs will be retested. If not, $44,000 is next.
Meanwhile, as Bitcoin prepares for its $48,000 rematch, the seller side is also gearing up to defend the zone. A look at the buy and sell levels on the Binance exchange shows the extent of resistance, and support at $45,000 is also important right now.
Additionally, another trader and analyst, Rekt Capital, evaluated an ascending triangle structure for BTC/USD and tested its upper bound on Sunday, but there was no breakout. “BTC has created a new LH in this latest successful retest attempt,” he tweeted on Monday.
Mining difficulty increases
Bitcoin is climbing to all-time highs in mining difficulty after a long hiatus. After the latest automatic recalibration on Friday, difficulty saw a 7.3% increase, completing its best performance since Bitcoin’s May price sell-off.
As we reported, the mining power declined to its lowest levels with the miners starting to leave China. Afterwards, the hash rate returned to its former levels as miners re-operated from different regions. As a result, the larger Bitcoin mining hash rate allows Bitcoin to have more competition and a more stable and secure Blockchain. Additionally, while the hash rate was 113 exahash per second on Monday, the ATH level for the hash rate that was now 100 exahash and in place before the China episode is 168 EH/s according to the MiningPoolStats monitoring source.
Dollar weakens against Bitcoin
It seems to contribute to the positive side of Bitcoin in the macro-environment. The dollar is closing the week with difficulty, with little rebound so far. It’s been 50 years since the dollar ended its gold convertibility last weekend. This weakness in the dollar causes BTC to increase its potential, although it is not a guarantee of easy returns, because it is preferred.
Fear and Greed index hits highest since April
The Fear/Greed ratio, which reveals investor behavior, comes in the form of the Crypto Fear and Greed Index, which scored the highest in four months over the weekend. Leveraging a number of factors to determine whether crypto, in general, is oversold or conversely due to a sell-off at certain prices, the Index hit 76/100 on Sunday, corresponding to “extreme greed.” By contrast, just last month, it was measured at 10/100. The opposite of today, or “extreme fear”. A possible attack on $50,000 for Bitcoin ( BTC ) could therefore serve to uplift sentiment once again, raising the risk of an unexpected correction as the market moves to April all-time highs.