Bitcoin continues to trade above the $30,000 mark, yet altcoins appear reluctant to follow suit. Let's delve into a market analysis for Bitcoin (BTC) and Solana (SOL).
Bitcoin
BTC continues to trade sideways, hovering between $29,550 and $31,250. The most plausible expectation is an ongoing upward trend aiming toward the resistance level of $31,600-$32,400.
Key support zones are established within the $28,700-$29,200 and $26,800-$28,000 brackets. The prevailing trend for the leading cryptocurrency will maintain its bullish outlook as long as the asset remains above the $26,500 level.
BTC chart on the H1 timeframe
Solana (SOL)
The price of Solana (SOL) currently sits between a support level of $15.93 and a resistance level of $16.25. The next significant barrier for sellers stands at $17.02. The overall trajectory for SOL will continue on a downward trend until the asset breaches the sellers' range of $18.3-$20.02 and sustains above it.
If Bitcoin takes a sharp dip, Solana will likely revert to its previous lows, with support zones anticipated at $15.15-$15.5 and even beneath the $14 mark.
SOL chart on the H1 timeframe
Bitcoin's dominance currently stands above 51%, and should BTC encounter a brief downturn, its dominance is likely to expand. This phenomenon arises as altcoins tend to react slowly to Bitcoin's growth, but sharply to its decline. For instance, a 4% drop in Bitcoin typically results in a 7-8% plunge in most altcoins, consequently bolstering Bitcoin's dominance.
It is better to weather such situations and purchase coins at improved prices after an upward trend has corrected.
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Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. These are solely the opinions of the GNcrypto editorial board regarding the market situation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the movement of price between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K - $23,400).
Gray range on the chart — a support zone.
Red range on the chart — a resistance zone.
Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from GNcrypto:
