The price of Bitcoin (BTC) maintained the key support level of $ 9,000, after which it recovered to $ 9,600as expected in last week’s technical analysis. However, the general market trend for Bitcoin price has not been out of reach since halving in May.
According to Coinmarketcap, Bitcoin’s current market cap is $ 178,267,741,759.
Support ranges from $ 8,800 to $ 9,000, while resistance ranges from $ 10,100 to $ 10,300. Volatility and volume have decreased as this area has narrowed. When can the market see volatility and big moves again?
Daily performance of the crypto market. Source: Coin360
The Bitcoin price held the important support level
As the chart shows, key levels of support for the Bitcoin price held out last week. The support range between $ 8,800 and $ 9,000 was crucial for the maintenance as it was the previous low.
1-day chart for the BTC / USDT pair. Source: TradingView
The main reason why this was an important level of support is because of the uptrend structure. As long as the price reaches higher lows, the upward trend remains valid. If the price of Bitcoin loses the previous low, the price would gradually accelerate. The likelihood of many stop / loss triggers being affected is high, increasing the likelihood that a candle worth $ 1,000 will drop.
However, the price of Bitcoin recovered after the crucial level of support was maintained. So, The construction of the ascending triangle is retained. Also, The moving 100 and 200 day averages (MAs) are below the current price level. As long as they remain below the price, the Bitcoin price is bullish.
Finally, as the construction of the ascending triangle shows, The Bitcoin price can remain within reach for a month or two.
4 hour chart for the BTC / USDT pair. Source: TradingView
The 4-hour chart shows a significant breakout of the USD 9,200 resistance level, which leads to a significant upward movement. The BTC / USD pair is currently at the USD 9,650 resistance level as this level was not tested during the previous decline.
As mentioned above, an important parable is unlikely to occur immediately Bitcoin’s price is a few more untested levels, namely $ 9,900 and $ 10,100.
The most likely hypothesis would be a “Ladder” pattern. In this sense, The Bitcoin price rises towards the resistance zone, declines and successfully tests the previous resistance zone for support. Next, price movement should accelerate once Bitcoin’s price exceeds the high of $ 10,100.
The entire market capitalization of cryptocurrencies breaks
Chart of total crypto market cap for the day. Source: TradingView
The total capitalization of the crypto market shows a significant break of $ 270 billion. This level is comparable to Bitcoin’s $ 10,100 level. However, The entire market cap is already crowded, while Bitcoin is still in its narrow area.
Overall, the bullish case for full cryptocurrency market capitalization persists if support levels are held between $ 265 and $ 270 billion.
Altcoins are more robust than Bitcoin’s price
Graph of Altcoin’s total market cap for the day. Source: TradingView
The total market capitalization is already increasing, while the price of Bitcoin is in one area and many old coins have risen in price far and wide.
Lately, altcoins have been doing relatively better than Bitcoin’s price. because some show impressive wins. Even Ether (ETH) increased the price significantly from $ 245 to $ 285 last week.
The graph shows a clear upward trend for capitalizing the altcoin market, as has made ups and downs higher. The current resistance zone of $ 100 billion should well support the next upward trend to $ 125 billion.
Bullish scenario for the Bitcoin price
4 hour bullish scenario chart for the BTC / USDT pair. Source: TradingView
The bullish scenario can be divided into two parts. The first is a Immediate progress to $ 9,650 level, then the next zone to be tested is $ 9,900.
The second is a correction to $ 9,300, after which the price continues to rise.. In this scenario, a potential cheat of $ 9,650 over the weekend can be expected. Weekends are often fraudulent in the markets where wrong moves are not uncommon.
The key level of support that must be maintained as support is preferably $ 9,300. However, the $ 9,200 range is a success or failure level as it is the recent low. If the current low is lost, the entire technical structure breaks down and the market is set for another downturn.
2-day chart for the BTC / USDT pair. Source: TradingView
The most likely scenario would be to step into the massive resistance zone at $ 10,000. As the trend line and chart show, this upward momentum can take several weeks or months before a significant breakout occurs.
In the event of an outbreak of over $ 10,000, a significant price increase is expected. The first resistance zone is at $ 12,000, while a recovery in the Bitcoin price to $ 15,000 should not be ruled out either.
Bearish scenario for the Bitcoin price
4-hour bearish scenario chart for the BTC / USDT pair. Source: TradingView
The bearish scenario is pretty simple. Refusing to retake the test would drop it to $ 9,300..
The difference between the bullish and bearish scenarios would be a continuation of the downtrend by retesting support levels in a failed manner.
For example, there will likely be more lows if the price of Bitcoin jumps towards $ 9,500 but immediately declines to that level and loses the $ 9,300 level immediately thereafter.. These bearish rejections are crucial to see if Bitcoin’s price starts to correct.
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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