The cryptocurrency market was very active last week. After falling to $66,000, Bitcoin climbed rapidly after Donald Trump’s victory and reached an all-time high (ATH) of $85,000 overnight. Bitcoin continued to rise throughout the week, closing above $80,000 for the week on most exchanges.
Bitcoin has been trading within a descending broadening wedge for the past six months. However, during election week, this wedge broke to the upside and the price began to consolidate in this area. With Trump’s victory, the big bullish move we were expecting occurred and Bitcoin reached this level.
Bitcoin’s Rise and Potential Corrections
Bitcoin’s price is now following a very clear direction. If a major correction occurs, the $73,000-$75,000 range could be a significant support area. However, if the price pulls back to these levels, there could be opportunities in the altcoin market. Bitcoin has now broken through all the barriers and it is a matter of curiosity how the price will move in the coming days.
Status of Major Altcoins
In this article, I will discuss the situation of major altcoins that have been affected by the rise of Bitcoin.
Ethereum (ETH): ETH has managed to break the critical resistance that has been tested for a long time. While Ethereum is rapidly advancing towards $4,000, the new support area is forming as the $2,800-$2,850 range. If ETH can stay at this level, the green zone will become an important support point. The future of Ethereum looks quite positive.
Binance Coin (BNB): Binance Coin is approaching its old high. The yellow zone tested in 2021 has been tested frequently in the current cycle, but it has not yet been settled above this level. A weakening of this resistance zone for BNB could see the yellow zone act as “support” in a few months. Investors will expect weekly closes above the $695-$700 level for continued positive movement in BNB.
Solana (SOL): Solana has broken through its own "glass ceiling" and is on a strong rally. Breaking through the blue zone, SOL has consolidated at this level for a long time before making a significant technical breakout. If SOL accepts the blue zone as support, then this zone will be considered major support. This is a very positive sign for Solana.
XRP: XRP seems to be still waiting for big news. Despite a slight uptick last week, it is possible to say that XRP is far from its former strength. The red zone ($0.70-$0.81 range) is a critical support level and XRP is expected to test this level. As XRP gains strength above the purple zone, it may exhibit a more positive outlook.
Cardano (ADA): ADA made a significant breakout after staying in the long-term support zone and managed to break its own "glass ceiling". If ADA makes a weekly close in the $0.44-$0.50 range, this zone could become a new support level. The first target for ADA will be in the $0.69-$0.81 range.
Dogecoin (DOGE): With the influence of Elon Musk and Trump, Dogecoin made a significant rise last week and became one of the shining stars of the altcoin market. DOGE broke through a significant resistance level of $0.22. This area will now be the "major support" area for DOGE and its next target will be the $0.33-$0.35 range. If it breaks this area, it could trigger a much larger rise for DOGE.
Avalanche (AVAX): AVAX had a strong breakout last week with the yellow zone acting as major support and rose to the purple zone. It is currently attempting to break out of the purple resistance zone. If this zone is broken, the red zone will be the next target for AVAX. This could be a major turning point in AVAX’s rise.
Conclusion
The cryptocurrency market is experiencing great movement in altcoins along with the rise of Bitcoin. Bitcoin's movement at $ 80,000 levels also positively affects altcoins. However, being careful about possible corrections and evaluating opportunities will be important to make a profit in the altcoin market.
