The medium-term forecast of Bitcoin growth within the ascending channel 43033.38 – 47017.82 – 61759.10 of February 28 has not lost its relevance. In the first four days of April, the main cryptocurrency fell, but today it regained all lost positions. BTCUSD remains flat at 52929.55 – 57513.35 between the two blue dotted lines and may soon break through its resistance.
At the same time, altcoins show much more active dynamics. If we take a seven-day period, then during this time bitcoin has hardly changed (at the time of this writing, it has decreased by 0.02%), and ether increased by 24.77%, updating its historical maximum and at the moment rising above $ 3,500. Litecoin is also gradually approaching its historical values. It rose 30.89% over the week.
It is becoming clear that with the high popularity of cryptocurrencies, investors have shifted their attention from bitcoin to less expensive altcoins. Although the price in this case is not the only argument.
Analysts from Arcane Research note that it is altcoin season now. And this is clearly seen in the Bitcoin Dominance Index. Now it has reached its lowest level in two years, and for the first time it has dropped below 50%. From January to early May, this figure fell from 71% to 47%, which suggests that crypto enthusiasts are switching from BTC to alternative coins.
Arcane Research notes that one of the reasons for the shift in focus to altcoins is the growing interest in the DeFi space. Against this background, ether and other tokens of DeFi projects soared in price.
The hype around Dogecoin, although it looks like a bubble, should not be discounted. Meanwhile, the Solana and Binance Smart Chain platform coins are especially popular.
A similar situation was observed in 2017 during the bull market. During the moments of bitcoin consolidation, alternative coins were actively growing.
Against this background, bullish, we can conclude that the mood of crypto investors does not subside, despite the correction of bitcoin. The shift in focus is making more affordable coins popular for retail investors.
Meanwhile, possible scenarios for bitcoin with the current technical picture will depend on whether its price can break through the local resistance level of 57513.35 (blue dotted line) and gain a foothold above it. If so, then the path for growth into the $ 61,000 per coin area will be open. If the horizontal at 57513.35 stops the price, the main cryptocurrency may once again return to support at 52929.55 (blue dotted line).