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Bitcoin price finally ready to surpass $ 10,000?

May 30, 2020

The price of Bitcoin (BTC) had recovered significantly before halving when the price exceeded $ 10,100. Since then, the BTC price has hovered between $ 8,200 and $ 10,000.

But are the markets preparing to break out of this crucial resistance? Bitcoin shows strength, but other cryptocurrencies like Ethereum’s Ether (ETH) and Cardano (ADA) also show strength with double-digit returns in the past week.

Daily performance of the crypto market. Source: Coin360

Bitcoin price finally ready to surpass $ 10,000?Bitcoin price finally ready to surpass $ 10,000?

Daily performance of the crypto market. Source: Coin360

Bitcoin faces resistance of $ 10,000 as a key level to break

The 6-hour chart shows a clear area structure from the high of $ 10,100. The market collapsed prior to halving (i.e. buying the rumor, selling the news), after which the price stabilized and consolidated.

BTC / USD 6 hour chart. Source: TradingView

6-hour BTC / USD pair table. Source: TradingView

The graph shows an increasing wedge break at $ 9,800, after which support was found at $ 8,600. This is important because it shows another higher minimum. Crucially, the market has hit its lowest ever since the March 12 collapse.

Consequently, Bitcoin has been on an upward trend ever since. In fact, the price of Bitcoin surpassed the critical level of $ 9,300. As long as bitcoin remains above the $ 9,300 level, another upward movement may occur to retest the resistance zone at $ 9,800-10,100, increasing the likelihood of an upside breakout.

Once Bitcoin can do this, the next targets are $ 11,000 and $ 11,500, which will result in a further surge for all cryptocurrency markets.

The total capitalization of the crypto market is ready for a step towards USD 310 billion

The total capitalization of the cryptocurrency market shows support above the moving average of 100 and 200 days (MA). Total market cap has also consolidated in one area, with support of $ 225 and resistance of $ 267-268 billion.

Total market capitalization for cryptocurrencies 1-day chart. Source: TradingView

Chart of total capitalization of the 1-day cryptocurrency market. Source: TradingView

The construction industry is a good sign of further upward momentum, as the overall market capitalization trend also shows higher lows. in addition, The market is bullish as long as the 100 and 200 day moving averages (MA) serve as support.

The previous cycle has maintained support across these MAs throughout the cycle, making it a key indicator.

Total cryptocurrency market cap 4 hour chart. Source: TradingView

Total capitalization chart of the 4-hour cryptocurrency market. Source: TradingView

The 4-hour chart also points to further upward movement when a clear rising triangle is formed.

At $ 265 to 267 billion, the resistance range has been tested multiple times, weakening the resistance on every test. The total market capitalization reaches higher lows and makes this an ascending triangle.

In other words, another resistance test can trigger a breakout and further upward movement. The next goals for total market capitalization are $ 310 billion and $ 325 billion.

The market capitalization of altcoins shows impressive strength

Total Altcoin market cap cryptocurrency 1-day chart. Source: TradingView

1-day chart of the total market capitalization of altcoins. Source: TradingView

The market capitalization of altcoins eventually changed the moving average of 100 and 200 days (MA) for support. In addition to providing support, these MAs currently have $ 70 billion. This opens the door to further upward momentum as altcoin’s market cap has surpassed $ 82 to $ 83 billion in the past few days.

What are the next goals for this market cap? The next primary resistance is $ 110-115 billion.

Ethereum leads toward a $ 240 rally

The most important indicator for old coins is ether. As soon as ETH begins to move, the other old coins are ready to follow this example. In recent days, Ethereum has moved from $ 195 to $ 240, which is a strong signal for alternative currencies.

ETH / USDT 1-day chart. Source: TradingView

1-day chart of the ETH / USDT pair. Source: TradingView

Ether’s price chart is identical to the market capitalization of altcoins. The ETH found support above the 100 and 200 day MAs and at the same time showed an increase in volume, a sign of strength.

At the same time, the level of support changed from $ 195, which continued the upward trend. Since the $ 215 level has been tested multiple times, an upcoming test would mean a break through that level of resistance.

The ether price has broken the barrier and is currently rebounding to the next resistance level at $ 250-253. If the Ethereum price exceeds this resistance level, the next zone is $ 290.

The bearish scenario for Bitcoin

BTC / USD 3 hour chart. Source: TradingView

3-hour chart of the BTC / USD pair. Source: TradingView

Bitcoin’s bearish scenario implies a rejection of $ 9,800, but above all a breakdown below the support area of ​​$ 9,300.

If the $ 9,300 range is lost, this is likely to be another disadvantage. Traders should look for possible further declines in previous support levels. Such a bearish test marks the previous level of support for resistance, where further downward momentum is warranted. The essence of a downward trend.

The main area to watch out for when Bitcoin’s price drops below $ 9,300 is the support zone from $ 8,600 to $ 8,800.

The bullish scenario for Bitcoin

BTC USD 3 hour chart. Source: TradingView

3-hour chart of the BTC / USD pair. Source: TradingView

The bullish scenario is straightforward. Bitcoin price should stay at $ 9,300 above the green. As long as this level remains supported, further upward momentum can be expected.

With that in mind, you can expect an upward resistance trend at $ 9,850 to $ 10,100. As discussed, As soon as the upper resistance level has been tested several times, the expectations for an upward break rise.

If Bitcoin exceeds this level of resistance, there will be another sustained recovery towards $ 10,500, 11,000 and $ 11,600 below the options.

The best environment for altcoins is a slow upward move to Bitcoin. As we’ve seen in the past few days, other alternative currencies like Ether and Cardano have started to show strength. As Bitcoin continues to move higher, higher breakouts may occur with more altcoins.

The views and opinions expressed here are solely those of 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.