The Bitcoin (BTC) price showed weakness throughout the week. However, The important level of support is maintained, and this has triggered the continuation of many alternative currencies such as Tezos (XTZ) and Algorand (ALGO), which will skyrocket on July 11 and gain more than 9% and 17%, respectively.
Massive price increases for altcoins generally occur when Bitcoin stays calm, and that’s what we’ve seen in the past two months. The question is how long this will take and whether the top-ranked cryptocurrency is ready for another test of the $ 10,000 resistance level.
Daily performance of the crypto market. Source: Coin360
The Bitcoin price remains an important support level above $ 9,000
1-day BTC / USD pair chart. Source: TradingView
The structure is still intact, while the necessary conclusion is close. However, the price of Bitcoin was weak all week.
What are the signs that the markets are showing?
The first is the crucial upward trend. This trend is still active as long as the market continues to hit lows. It is important that bitcoin maintain the support level of $ 8,500 to $ 8,800 in higher periods. If this level is lost, a coordinated response to sales orders can be triggered.
However, in a lower timeframe, this also applies to the $ 9,000 to $ 9,100 level that affects around the trend line.
Secondly, The market is moving above the 100 and 200 day moving average, and that’s a bullish signal since this implies bullish territory. These two moving averages (MA) come into play sooner rather than later. These MAs can serve as support that further increases the price.
Eventually, the Relative Strength Index (RSI) oscillator created a hidden bullish divergence by setting another higher low, allowing the resistance zone to be retested at $ 10,000.
What are the key areas in no time?
4-hour chart of the BTC / USD pair. Source: TradingView
The 4 hours give a clear explanation for the recent movements with limited range. The $ 9,400 level acts as resistance, while key support remains at $ 9,000 – $ 9,100 as support.
This range can be maintained for several days because the price is between these levels.
However, the conflict in the markets arises when the price has risen since the high on June 1. It is crucial for the bulls to break through at a resistance level of $ 9,400, which will likely result in another test of the resistance block of $ 9,600.
A breach of $ 9,600 means that it is possible to continue the $ 10,000 resistance level. If this level is tested again, an outbreak becomes more likely.
If the bears take control of the Bitcoin price, the support level of $ 9,000 to $ 9,100 should be lost first, as the higher lows will then be erased.
The overall market cap maintains the upward trend
Chart of total capitalization of the 1-day cryptocurrency market. Source: TradingView
The cryptocurrency market total capitalization chart shows a stable picture. Surprisingly, the chart hits a new higher high while Bitcoin lags behind and hasn’t yet reached a new higher high.
This shows that altcoins have been in the spotlight lately as they have gained momentum and market capitalization. In addition, the chart shows a hidden bullish divergence that appears on the chart alongside support at $ 240 billion.
Further compression is likely to occur before further upward movement occurs instead of additional downward movement.
The bullish scenario for Bitcoin
1-day bullish scenario chart of the BTC / USD pair. Source: TradingView
As mentioned earlier, the $ 9,000 to $ 9,100 range was a key linchpin. Fortunately for the bulls, the market has continued to look for support to help design the bullish scenario.
The USD 9,000 – USD 9,100 area must be maintained, which will maintain the upward trend. As long as this upward trend continues, the momentum has increased and a test of USD 9,600 can take place.
This $ 9,600 resistance level has not been tested and is ready for a market test. If the Bitcoin price is rejected at this level of resistance, the next target area for support is the $ 9,300 zone.
If this structure evolves, a renewed test of the USD 10,000 area is likely. A repeated test of the USD 10,000 – USD 10,500 range would therefore lead to a possible breakout upwards.
The bearish scenario for Bitcoin
The bearish scenario is fairly simple and needs to consider a few key points.
1-day bearish scenario chart of the BTC / USD pair. Source: TradingView
Crucial pivots are another rejection at the $ 9,400 level, which leads to a double top confirmation and a possible trend reversal.
Such a rejection would create another lower peak and guarantee a higher downward pressure. In this case, you will likely see tests of the $ 9,000 to $ 9,100 level again. However, the more often a significant value is tested, the more likely it is to fail.
The most important linchpin to consider is the loss of the $ 9,000 to $ 9,100 level. In this case, the volume should be displayed with a chain reaction of sales order executions (stop loss). It is likely that there will be a decline towards the $ 8,500 to $ 8,600 range, after which a decline in the level of $ 9,000 to $ 9,100 would justify further downward momentum.
Similarly, with such a decline, 100 and 200 day MAs will be lost and the market is likely to look for support for 100 and 200 week MAs.
The first major support level is between $ 7,500 and $ 7,700 when the market falls below the two-month consolidation support area.
If this does not happen, the market is ready for further upward and range moves. As shown in the graphic, these movements can take place until the end of August. This would be good for old coins as they can continue to enjoy the spotlight.
But keep in mind that if Bitcoin seems to be taking a volatile move soon, altcoins will suffer.
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.