The past week was a huge week for Bitcoin (BTC) as the price rose from $ 7,500 to $ 9,450. However From the high of $ 9,450, the top-ranked cryptocurrency by market cap hasn’t continued because the price is consolidating $ 800 lower.
Is the halving hype over and is the market ready for a correction after a 150% recovery since Black Thursday?
Daily performance of the crypto market. Source: Coin360
The Bitcoin price faces a large resistance area
1-day chart of the BTC / USD pair. Source: TradingView
The Bitcoin price faces its next area of massive resistance, i.e. H. $ 900- $ 9,500. Bitcoin’s price broke the resistance at $ 7,800 last week, pushing it up to $ 9,500.
As shown in the graph, there was a significant rejection of $ 9,500. Bitcoin’s price dropped from $ 1,000 to $ 8,500.
Clear support levels are shown in the green areas. The first level is shown between $ 8,250 and $ 8,400, while the next support level is between $ 7,600 and $ 7,800.
On the other hand, the red resistance range is between USD 9,100 and USD 9,500. This resistance area was established in summer 2019. During Bitcoin’s upward trend this year, the price found regular support in the $ 9,500 range.
This basic area is now a strong resistance. A clear advance in this area would define a continuation to USD 10,500 and possibly USD 11,500.
Traders are seeking support for around $ 8,400, while $ 8,600 will act as a unit
30 minute BTC / USDT pair table. Source: TradingView
The smaller time frames show a clear structure of the movements associated with the area. The highest resistance is at $ 9,000 and $ 9,200while the lower support ranges from $ 8,400 to $ 8,600.
As long as Bitcoin’s price stays in this range, traders will be forced to use range moves.
The $ 8,800 range is a crucial linchpin for further upward momentum. If the range of $ 8,400 to 8,600 continues to be supported, an advance of $ 8,800 could trigger a test of $ 9,100 to $ 9,200 before the long-awaited halving event, which is now less than eight days away.
However, if interrupted under $ 8,400 support, the next major pivot would be $ 7,800.
The entire market capitalization is also consolidated
1-hour graph of total market capitalization in cryptocurrency. Source: TradingView
The total market capitalization chart for cryptocurrencies shows a similar structure to the Bitcoin chart.
A clear consolidation in an area where USD 250-260 billion is the resistance area, while USD 230-236 billion is considered support.
Losing the $ 230-236 billion level of support as a support would likely lead to further downward momentum, reducing the entire cryptocurrency market to $ 215 billion as the next central hub.
Significant progress of the $ 245 billion resistance is needed for full market cap to continue its recent upward momentum.
Chart of total market cap of 1-day cryptocurrency. Source: TradingView
The daily picture of the total capitalization of the cryptocurrency market also shows a clear perspective.
The support of around USD 230 to 236 billion is a fundamental level compared to the previous year, as the graph shows. Maintaining this level of support would open the door to possible evidence of the next resistance of around $ 256 billion.
A break below $ 235 billion, however, would likely reduce the overall cryptocurrency market by 10% as the next key step is $ 207 billion.
Bitcoin dominance continues to rise at the gates of bitcoin halving
1-day BTC dominance chart. Source: TradingView
The dominance diagram reaches a crucial level for old coins. The level of 67.50% has been offering “support” for a year. However, it now acts as a “resistance” if this terminology can be used for this graph.
A move above 67.50% could add more fuel to Bitcoin as the BTC / USD pair gains significant momentum just before halving.
However, when 67.50% offer resistance again, a further downside break and 60% testing could be expected. Such a breakdown can lead to significant and strong movements for all cryptocurrencies.
The bullish scenario for Bitcoin
Bullish scenario chart of the 30-minute BTC / USDT pair. Source: TradingView
The bullish scenario in the smaller timeframes shows some basic levels. The $ 8,400 to $ 8,600 range should continue to offer support, as noted above.
After that, over $ 8,800 will be needed for further upward momentum. Once this happens, the goals of $ 9,100 to $ 9,200 come back as opportunities.
However, if traders and investors want to continue the real FOMO and the momentum to halve, it must exceed $ 9,100 to $ 9,200. If the Bitcoin price rejects this level again, the halving is likely to be over.
If $ 9,100 to $ 9,200 are higher, another rally can take place with potential goals of $ 10,500.
The bearish scenario for Bitcoin
Diagram of the declining scenario of the 30-minute BTC / USDT pair. Source: TradingView
The bearish scenario offers various options. There are basically two options, the first is support from USD 8,400 – 8,600. If you lose this level, you are likely to expect further downward momentum towards USD 7,800.
However, the next basic thing to keep in mind in diagrams would be to create a lower peak in the diagrams. As soon as the Bitcoin price exceeds the $ 8,800 range and cannot exceed $ 9,000, a new lower maximum is shown in the graph.
Such momentum could create a possible descending triangle and a possible subsequent breakdown below $ 8,400. The next support area will also be $ 7,800.
The views and opinions expressed here relate exclusively to author and do not necessarily reflect Cointelegraph’s views. Every investment and trade movement involves risks. You have to do your own research when making a decision.