BTC - 6h. It is important for buyers to close the week above 35k

5 Jul 2021

The previous week of trading on the BTC market passed without any significant shifts in a positive or negative direction. The targets of our previous idea are relevant:

After the previous weekly candle closed with a big hairpin down, the market expected a decent response from buyers and an attempt to test the upper border of consolidation ($40600-41500). Of course, buyers started a local growth trend, but it is difficult to call it an initiative attack.

The last attempt of buyers on June 29 to take control of the average consolidation line of $35600-35700 was unsuccessful. Buyers were able to break through this range for some time, but did not consolidate above it. Trading volumes after breaking through this range were average. However, after this attack, a new attempt by buyers to seize the range of $35600-36700 looks even weaker. The price of BTCUSDT is approaching the buyers' trend line for the fourth time. If the situation on the BTC market does not change, then sellers will be able to test the range of $31500-31700. It is the retention of this range that is the main condition for the breakout of the 3-month consolidation in the BTCUSD market upwards and the test of $50,000.

The dominance chart tells us about another local fall wave in the BTC market:

As we can see on the chart, the indicator is moving in a triangle and the downward trend is not over yet.

A slow and steady decline in the price and impact of BTC can have a positive effect on the altcoin market. While the price of BTC has not been feeling very well in recent days, the COMP market has doubled:

For a positive scenario in the cryptocurrency market, buyers need to close the current weekly candle in the range of $34,500-35,300. This range is interesting in that for 7 times the weekly candles break through this range, but close above it:

Such a powerful series of false breakouts indicate another medium-term growth wave. The main task of buyers is not to spoil this series.

Therefore, we think that this week may be the last week of testing buyers for strength.

Alternative scenario. In case of a breakdown of the range of $35600-35700 upwards, the chance for one wave of falling down will be much less. At the moment, it is too risky to enter any position and we will expect either a test of $ 31500-31700, or the price fixing above $35600-35700.
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