Bitcoin (BTC) has increased its dominance over the cryptocurrency market by posting gains while most altcoins consolidated. At the same time, XRP was hit hard by news of the SEC’s formal lawsuit against Ripple and its two executives, which further strengthened Bitcoin’s market dominance.
The largest cryptocurrency by market capitalization is currently moving sideways and has only managed to gain a few dollars over the past 24 hours. However, XRP’s crash following the SEC lawsuit, combined with general market stagnation, has allowed Bitcoin to edge closer to a 70% market dominance level.
Overall outlook for Bitcoin is positive, especially after a period of disciplined consolidation. Looking at week-over-week performance, BTC posted a 1.48% gain while ETH declined by 6.28%. Meanwhile, XRP lost 37.41% over the same period.
At the time of writing, BTC is trading around $23,500, representing a 22.46% increase from the previous month.
BTC/USD
On the daily chart, Bitcoin entered a consolidation phase on December 20 after hitting resistance at $24,300. Both the RSI and trading volume have declined while price remains relatively elevated — clues that can help anticipate the next move.
Although Bitcoin rarely consolidates for long on declining volume, the current trading range is fairly wide and the largest cryptocurrency by market cap may remain within it for some time.
That said, the bias is clearly bullish. A decisive break above $24,300 would send BTC back into price discovery. Conversely, if the asset retraces some of the recent gains, it will encounter several strong support levels around $22,720, $21,740 and the $20,000 area.
BTC/USD daily price chart. Source: TradingView
Technical analysis shows Bitcoin’s daily RSI is moving out of overbought territory while price holds steady. This combination, especially when paired with declining volume, is a bullish indicator. Taken together, these signals increase the likelihood that the next major move will be upward rather than downward.
BTC/USD 4-hour chart. Source: TradingView
On the 4-hour chart, Bitcoin’s movement is contained within a channel between $22,420 and $24,300. It’s also important to note that the 21-period 4-hour moving average plays a significant role in short-term price action for the largest cryptocurrency by market cap.
Translated by Carolane de Palmas