Bitcoin's (BTC) price broke through the crucial level at $forty,500 equally news of Tesla calculation $i.5 billion in Bitcoin to their balance canvass. This news event pushed the price to new all-time highs, putting the side by side major resistance level at $50,000.

What's more, other cryptocurrencies are accelerating left and right as the landscape is platonic for altcoins to start moving. All-time highs are existence established daily across many altcoins while Bitcoin is consolidating. But how long will this consolidation last? Permit's take a look at the charts.

Bitcoin price breaks key resistance on Tesla news

XBT/USD four-hour chart. Source: TradingView

The iv-hour chart shows an apparent quantum of the $40,500, which was crucial for more upside as the Tesla news resulted in the biggest daily green candle e'er for Bitcoin.

As the chart shows, the next level of interest is the psychological barrier around $50,000. It'south as well the next major Fibonacci level. The 1.618 Fibonacci level is often used as a crucial indicator to predict levels in price discovery.

BTC/USD 4-hour chart. Source: TradingView

Another of import level to lookout for Bitcoin is the order cake around the $43,300-$43,700 area. Continuation to the upside is likely equally long as that expanse holds.

However, a sharp drop is likely to happen if Bitcoin'due south price can't hold this level. Falling through the $43,300-$43,700 area would generate a cascade of cease/loss triggers as the toll of Bitcoin drops back in the range information technology acted in for several weeks. The next level of support tin can exist found between $37,800-$38,500 if $43,300 fails to hold.

A weakening dollar is fueling the crypto market

U.S. Dollar Currency Index (DXY) ane-day chart. Source: TradingView

The Dollar Strength Index (DXY) shows weakness after a temporary bottom at ninety points. This bottom formation was marked past a bullish departure, resulting in a small relief rally. This rally ended at the 91.lx points level and made a U-turn.

The primary question for the DXY now would be whether the ninety points level tin can hold. If that is the example, then the bullish deviation is withal valid and a renewed test of 92 could occur. Such a rebound would likely pb to a pullback for the crypto market.

However, if the DXY index continues its downtrend, then there won't be much to terminate the cryptocurrency marketplace from making higher highs and BTC hitting $50,000.

Total crypto market cap eyes $1.5 trillion

Full crypto market cap i-calendar week chart. Source: TradingView

The full marketplace capitalization of crypto shows force every bit information technology broke through the previous high. Only a minor retest of $730 billion occurred, which was followed by a nearly vertical movement.

The Fibonacci extension tool now shows that the new point of involvement is now at $ane.5 trillion, as the nautical chart shows.

The question is whether the market is ready to continue from here to the next potential point of interest at $2.1 trillion. If the market corrects, which may happen if Bitcoin loses the $43,300-$43,700 level, then traders should sentinel the $ane.05 trillion level for a potential bounce.

The views and opinions expressed here are solely those of the author and practice not necessarily reverberate the views of Cointelegraph. Every investment and trading move involves risk. You should behave your own enquiry when making a decision.