Bitcoin (BTC) investors have had an enormous week the price Bitcoin, the highest ranked cryptocurrency increased from $ 7,500 to $ 9,500. This one corresponds to an increase of 2,000 Dollars in a matter of one week. According to Coinmarketcap, Bitcoin’s market capitalization is currently $ 164,201,786,163.
Halves that FOMO? Is growth sustainable? All questions stem from the last few steps, but overall it was a solid week for Bitcoin and the cryptocurrency. What can the markets expect from here?
Daily performance of the cryptocurrency market. Source: Coin360
Bitcoin reaches a critical level of resistance and there is rejection
Bitcoin’s price hike ended at the important resistance barrier between $ 9,200 and $ 9,500. Why did you stop there? All of these resistance zones supported in mid-2019.
Weekly chart for the BTC / USD pair. Source: TradingView
Together with the horizontal resistance zone, the CME futures chart showed a significant CME gap between USD 8,200 and USD 9,055, which closed during the rally.
The graphic also shows Support levels of $ 7,800 and $ 6,600 that could be tested when the price of Bitcoin falls.
1-day chart for the BTC / USD pair. Source: TradingView
Bitcoin’s daily price chart also shows clear levels of support and resistance. The range has Resistance in the range of $ 9,200-9,500and the levels of sSupport ranges from $ 8,200 to $ 8,400 to $ 7,800.
The structure is quite simple. The price was declined from the $ 9,500 range as it dropped $ 1,000 within a few hours. This decline marks confirmation of a strong resistance area as sellers left their currencies in that area.
30-minute chart for the BTC / USD pair. Source: TradingView
The 30-minute chart shows a clear picture of recent movements. You would normally not use these smaller timeframes in an article. Given the recent volatility, these smaller timeframes may be better able to identify a structure on the graph than larger ones.
The graph shows a clear rejection in the $ 9,400 range, after which a decrease of $ 1,000 was recorded. The graph shows a support area near $ 8,400 as the price of Bitcoin was compressed there shortly before the big surge, making it an important price point that can serve as significant support.
As the graphic shows The price recovered from $ 8,400 and recovered to $ 9,000. There was the same compression that now acts as resistance, while $ 8,400 is a support level suggesting a new potential area for the coming period.
The total capitalization of the cryptocurrency market reaches $ 260,000 million
Graph of total cryptocurrency market cap for 1 per day. Source: TradingView
Total market cap shows a significant break of $ 220 billion that triggers a recovery. Resistance levels were $ 235, 246, and $ 260 billion. The first two levels were exceeded at once, after which the market capitalization was rejected by $ 260 billion.
Here is the same structure for Bitcoin. Support levels range from $ 235 billion to between $ 218 billion and $ 220 billion, the lowest in this area. Resistance levels are $ 246 and $ 260 billion, respectively, and are considered the highest in this area. After such a breakout, some consolidation should be expected before any other volatility.
Bitcoin’s dominance recovers with increasing halving
2-day chart of the BTC domain. Source: TradingView
Bitcoin’s dominance index rose last week. This is normal as people sell their altcoins to reduce losses against the BTC pair despite the gains in dollars.
As the graph shows, the level of dominance is approaching a significant level. If the dominance level rises above 67.50%, a further decline in altcoins can be expected.
Is it a strange sign? No, like him Bitcoin halves will take place in 10 days, The focus is entirely on the price of Bitcoin. However, if the focus disappears, the money should easily return to the altcoins and give them the opportunity to catch up with BTC.
The bullish scenario for Bitcoin
30-minute bullish chart for the BTC / USD pair. Source: TradingView
Bullish and bearish scenarios are relatively easy to derive from the charts. In order to remain bullish, the price of Bitcoin must remain at $ 8,600 (although it is possible to test at $ 8,400 as the range falls).
Hence a clear one An advance of $ 9,000 is the next hurdle to overcome, as the price of Bitcoin was declined yesterday, and that opens the door for the recovery to continue.
As the graph shows, changing the levels would be a basic trigger that should be considered. Breaking and maintaining the $ 9,000 support level ensures a continuation to $ 9,300 to $ 9,400 and opens the way to $ 10,500 with enough momentum.
The bearish scenario for Bitcoin
30-minute bearish scenario chart for the BTC / USD pair. Source: TradingView
The bearish scenario is identical to the movements that the price showed yesterday. As soon as the price of Bitcoin cannot exceed USD 9,050-9,100 and there is no support of USD 9,000, further downward momentum can be expected.
The main levels to be observed are $ 8,200 and $ 8,350-8,425as the graphic shows
Traders should also be aware of a possible “buy for rumors, sell for news” scenario due to the halving of Bitcoin. For example, the price of Bitcoin peaked three weeks before the last halving and led to a sharp collapse after the halving.
Similar scenarios were also observed with the halving of Litecoin (LTC), the seventh cryptocurrency by market capitalization. thats why If Bitcoin’s price can’t get back the range of $ 9,050 to $ 9,100, this is another drop in bitcoin to possibly $ 7,800 or less shouldn’t be a surprise.
The positions and opinions expressed here are exclusively those of author and do not necessarily reflect Cointelegraph’s views. Every step of investment and trading involves risks. You have to do your own research when making a decision.
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