Bitcoin

Bitcoin traders eye ‘crucial’ $38K level as BTC price action consolidates higher

Bitcoin (BTC) traded in a higher range on Friday, with analysts keen to see which critical levels would fall next.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bitcoin escapes fresh losses… for now

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD retaining $35,000 support overnight on Thursday while so far staying clear of $40,000.

A push higher had taken the pair to $39,000 before the consolidation phase began, but overall, Bitcoin was yet to make a decisive move up or down on longer timeframes.

For popular trader Rekt Capital, $38,000 needed to be flipped to support.

“The ~$38,000 area for BTC is the one to watch right now,” he noted on Wednesday, noting its significance in the current consolidation cycle.

BTC/USD 1-day candle chart (Coinbase) with consolidation highlighted. Source: Rekt Capital/Twitter

Altcoins lose dominance

Since then, volatility has waned, but broad calls for a significant market drop may ultimately go unanswered.

As Cointelegraph reported, fellow trader Crypto Ed was among those forecasting a return to near $30,000 as Bitcoin’s next move. On Friday, however, this was looking increasingly unlikely.

“Printed a couple of HL’s and starting to think we don’t complete that leg lower,” he told Twitter followers, with a chart likewise highlighting a crunch point at near $38,000.

“Confirmation when we break and retest that yellow horizontal.”

Crypto Ed’s BTC/USD forecast as of June 11. Source: Crypto Ed/Twitter

Related: Bitcoin price hits stock-to-flow rebound level not seen since 2017 all-time high

A look at buy and sell positions on largest global exchange Binance confirmed resistance at $38,500 and $40,000, respectively. By comparison, little noticeable support was in place much above $30,000. 

Buy and sell levels on Binance as of June 11. Source: Material Indicators/Twitter

On altcoins, the picture was more disheartening. Traders were faced with losses of around 4% across major tokens on Friday, with only Amp (AMP) positing noticeable daily gains of 17%.

Bitcoin’s market capitalization dominance thus improved as it drifted higher, hitting 44% from under 42% earlier in the week.

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