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Bitcoin price is trading sideways as it slowly approaches $ 10,000

May 19, 2020

The price of Bitcoin (BTC), the highest cryptocurrency, is below the psychological barrier of $ 10,000. The halving did not give the market what it had expected since most expected the price to fall further after halving.

What will happen in the market now? What can you expect from the Bitcoin price when it finally hits $ 10,000?

Bitcoin price is trading sideways as it slowly approaches $ 10,000
Bitcoin price is trading sideways as it slowly approaches $ 10,000

Cryptocurrency market in 24 hours. source: Coin360

The Bitcoin price is stabilizing in wide areas

BTC / USD daily chart. Source: TradingView

Bitcoin’s price has fluctuated widely since the beginning of this month. The resistance range is between $ 9,850 and $ 10,300, while the range support is between $ 8,200 and $ 8,500.

The BTC price is currently going without a clear direction, contrary to what many expected after the third halving of Bitcoin on May 11th.

Before the event, price increases were expected to continue as the hype and FOMO began to increase. Shortly before halving, range support fell sharply by $ 2,000.

Many expected a further drop in prices after halving, but the opposite was the case. Bitcoin’s price rose to a resistance of $ 10,000 and closed a huge CME gap. However, there is still an open CME gap of $ 9,435 in the charts.

BTC CME Futures 1 hour chart. Source: TradingView

The futures chart shows a large gap. If you check the longer deadlines, it looks like the gap has been filled because the sails overlap. However, an open gap in the diagrams must still be closed within the time frame of one hour.

We believe the hype is slowly subsiding as some altcoins have shown strength lately as the Bitcoin price drops.

The resistance has to break in order to continue to rise

4 hour chart. Source: TradingView

The structure of the 4 hour chart is pretty clear. The Bitcoin price rises in the resistance area. Along with these arguments, the volume has dropped sharply in recent moves. A decrease in volume is a sign of weakness.

In the short term, it is therefore more likely that it will fall than rise. And yes, this withdrawal is pretty healthy as the price of Bitcoin has risen 160% since Black Thursday’s fall on March 12th.

Overall market cap shows strength on the daily chart

Overall market cap shows strength as the 100- and 200-day moving averages (MAs) again serve as support. These are key indicators as these MAs have provided support throughout the previous cycle.

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

In addition, support for 2018 has turned back to support, an important level comparable to the key barrier of $ 6,000 for Bitcoin.

Another exciting fact is the increase in volume on the chart. An increase in volume indicates an accumulation that only strengthens the upside potential of the rally.

The bullish scenario for Bitcoin

1-day chart for the bullish BTC / USD scenario. Source: TradingView

The bullish scenario is straightforward. As long as the price of Bitcoin remains above the $ 9,300 range, further momentum is expected. The more often a price tests the upper resistance of $ 10,000 to $ 10,300, the weaker this resistance is. This level has been tested twice.

Which goals can be determined from the graphics? A significant leak above $ 10,300 could result in a continuation of $ 11,000 and likely $ 11,500. As of August 2019, the USD 11,500 level still has an open gap in the CME that has not yet been closed. If the price of Bitcoin rises, a continuation in this area can therefore be expected.

The bearish scenario for Bitcoin

4-hour chart of the bearish BTC / USD scenario. Source: TradingView

The bearish scenario is as discussed above. The Bitcoin price remains below the resistance area with decreasing volume. The structure is also known as a growing wedge.

In general, the mood starts to improve as the price goes up. However, as the graph shows, it is time to be careful about this change. The hype around the halving subsides and further secondary actions may be required.

There is still a gap of $ 9,435 in the CME that needs to be closed. If the price of Bitcoin loses this level, the next big support will be around $ 8,200-8,500, which can also be seen in the daily period.

1-day chart for the bearish BTC / USD scenario. Source: TradingView

The daily chart shows that the Bitcoin price is above the MA of 100 and 200 days. This is an optimistic perspective. In the short term, however, downward corrective measures do not have a negative impact on the market.

The level to watch out for is the low range of around $ 8,200 to $ 8,500, which perfectly matches the MA for 100 and 200 days, as they are expected to rise to these support levels.

After the Bitcoin price has lost these MAs, there are some real problems for the market, with more chances of further corrections.

The opinions and opinions expressed here are exclusively from the author and do not necessarily reflect Cointelegraph’s views. All investment and trade movements involve risks. You have to do your own research when making a decision.