The Bitcoin (BTC) price continued the weakness of the previous week as the USD 9,000 support was tested several times. However, the market itself is not bearish, since old coins like DOGE, for example, are rising in all directions.
Is the market ready for a momentum shift and a big volatile move in BTC, the top rated cryptocurrency by market cap?
Daily performance of the cryptocurrency market. Source: Coin360
Bitcoin is trading at the final support level to justify a bullish scenario
Bitcoin price remains at a significant support level as there is a deadlock between bulls and shorties.
Like the price of Bitcoin has consolidated, it can be argued that the price has been at a constant low since March 12th. The recent minimum is the area between USD 8,700 – USD 8,900. That is the bullish case.
However, The price has dropped from the high of $ 10,300 and has since reached lower highs. This leads to general conflicts in the markets. there are bullish and bearish arguments.
One-day chart for BTC / USDT. Source: TradingView
Bitcoin’s price is currently above the 100-day and 200-day moving averages (MA). as shown in the graphic. At the same time, the crucial level of support from USD 8,700 – USD 8,900 remains and also implements a lower level of support USD 9,050 – USD 9,100The couple is currently here BTC / USD.
Meanwhile, A possible ascending triangle can be formed if the price of Bitcoin soon exceeds $ 9,300.
4 hour chart for BTC / USD. Source: TradingView
The 4-hour diagram shows a clear pause from USD 9,150 – USD 9,200, that actually is checked for resistance and a confirmation of this support / change in resistance, is currently approved at the level of USD 9,000 – USD 9,050.
This is remarkable for Bitcoin’s price history lately. because the levels have become very narrow, which leads to very small price movements.
Since the price is in such a small range, its volume decreases. The volume generally arises from an eruption of any construction that is expected to occur next week.
The total market capitalization shows more strength than Bitcoin
One day full market cap chart. Source: TradingView
Shows market capitalization stronger than the price of bitcoin. Market capitalization It shows a clear upward trend that reversed any level of resistance before support, for example $ 255 billion (top green box).
The next important step in opening market capitalization is $ 270 billion. If this level breaks, movement is likely towards $ 305 billion.
One-day chart of the total market capitalization of altcoins. Source: TradingView
The total capitalization of the altcoins market has recently been stronger than that of bitcoin due to the recent strength of the altcoins.
The total capitalization of the altcoins market shows a significant break and a change in support / resistance from $ 91 to $ 92 billion. As long as the green box is still supported and the total capitalization of the altcoins market don’t fall below, altcoins will likely continue the recovery.
The next area of resistance to watch out for is $ 113 billion. That’s about twenty percent from here.
The bullish scenario for Bitcoin
The bullish scenario is mainly based on breaking the USD 9,200 resistance level. and another test of support levels could affect the bullish scenario.
4 hour chart for the bullish scenario of the BTC / USD pair. Source: TradingView
The graphic shows many untested levels on the top, that are likely to be tested if The $ 9,200 level is exceeded.
The first possible level of resistance after $ 9,200 It’s the resistance zone at $ 9,400. As shown in the graphic, there were none “Evidence” for this previous level. A test means that the price rises towards that level to confirm a rejection by that level. Such Rejection can be classified as Resistance, and later The price is reversed.
However, The graph shows many untested levels above the current price level. Not only have they not been tested the USD 9,400, but you can see one similar case with $ 9,600 and $ 9,800, for example. When the price of Bitcoin exceeds $ 9,200, a change in support / resistance at that level increases the likelihood of reaching $ 9,600 shortly.
An excess of $ 9,200 also forms the structure of an ascending triangle. Then it turns It is very likely that the price will try to visit the region again from USD 10,000 – USD 10,500 and a possibility of a huge breakup.
The bearish scenario for Bitcoin
6-hour chart for the bearish scenario of the BTC / USD pair. Source: TradingView
The bearish scenario is to reject the $ 9,200 level and then lose the $ 9,000 support level. Any rejection of the previous level of support by the resistance would indicate a Further downward momentum for BTC, which will tend to bring the price down.
These signals confirm to traders that the Bitcoin price is ready for a further decline. However, a move from $ 9,200 to $ 9,400 after losing $ 9,200 as support would also mean no buyers would have to intervene, another bearish signal.
Bitcoin’s price is likely to accelerate once the $ 10,500 mark is crossed. The opposite is true for the bearish case if support of $ 8,600 is not maintained.
This is likely because there aren’t many levels of support below $ 8,600. suggest that The price can quickly drop by $ 1,000 in a few hours. since the Trader stop / losses can also increase downward pressure if the price at the support level falls below a critical period of two months.
The next major support level below $ 8,600 is in the range of $ 7,500.
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