Bitcoin

The Bitcoin price maintains key support and is close to reaching $ 10,000

Lately, the price of Bitcoin (BTC) has shown practically no volatility. This volatility has especially declined recently, while Bitcoin has remained at the key support level of $ 9,000.

But on July 21st Bitcoin finally took a sudden step as expected in the final analysis, and the price increase from $ 9,100 to $ 9,400. So, Volatility back or is that just a bump? Let’s take a closer look.

Daily performance of the cryptocurrency market. Source: TradingView

The Bitcoin price maintains key support and is close to reaching $ 10,000
The Bitcoin price maintains key support and is close to reaching $ 10,000

Daily performance of the cryptocurrency market. Source: TradingView

Crucial support at $ 9,000 remains as support

Bitcoin price It held crucial support at $ 9,000 and dropped above. However, the price for BTC is still within the structure of the ascending triangle.

This means the price the best-placed cryptocurrency by market capitalization It has declined steadily since the collapse on March 12. Since then every previous resistance level was confirmed as support Initiate movements of Upward support / resistance and further upward continuation.

One-day chart for BTC / USDT. Source: TradingView

One-day chart for BTC / USDT. Source: TradingView

The key area that had to be maintained was the range between $ 8,900 and $ 9,000 (in smaller terms). The recent low between $ 8,500 – $ 8,800 was already a support, after that, the same thing happened with the range is between $ 8,900 – $ 9,000.

So is the price of Bitcoin continues to work above the 100-day and 200-day moving average (MA), That is a bullish signal. While the price of bitcoin Hold above these MAs, the market is in bullish territory.

However, it seems somewhat unlikely occur for a sudden massive surge since the price of bitcoin it still works in a huge area.

4 hour chart for the BTC / USDT pair. Source: trade view

4 hour chart for the BTC / USDT pair. Source: TradingView

The likelihood of a candle worth $ 1,000 increases as soon as Bitcoin regains the values ​​that have not yet been tested. This is shown in the table.

See you, The probability of movements with a constant range remains. In this case, it is likely that all previous levels are given a test to confirm the break, after that probably The next level is tested.

The levels that not yet tested last month they are $ 9,650, $ 9,800 and $ 10,100. Once the price of Bitcoin break the $ 10,100 mark, it is likely to happen a massive sequel with huge growth.

The USD 9,200 resistance broke very early today, which immediately led to one Increase to the resistance zone of USD 9,400.

The bullish scenario for Bitcoin

4 hour bullish scenario chart for the BTC / USDT pair. Source: trade view

4 hour bullish scenario chart for the BTC / USDT pair. Source: TradingView

The bullish scenario would mean a one-time continuation of the $ 9,600 level or a corrective action before the continuation.

With this in mind, a new test of the previous level in the USD 9,200 as support is not typical. When a new test occurs, the next compression and break is likely It will open the door to $ 9,600 and possibly $ 9,800.

As shown in the graphic These movements are exactly the opposite of what the market has seen before. The market witnessed last month a general drop, although it is very likely now otherwise for the next few weeks.

Currently the key level of support for this is has to be held, is it from USD 9,200, as this would increase the chances a more pronounced upward movement.

The bearish scenario for Bitcoin

4-hour bearish scenario chart for the BTC / USDT pair. Source: trade view

4-hour bearish scenario chart for the BTC / USDT pair. Source: TradingView

The bearish scenario also has a critical pivot of $ 9,200. In this scenario, the price of Bitcoin cannot break over $ 9,400 and immediately lose the support level of $ 9,200.

If that happens A further drop in prices is likely to be expected as the ascending triangle becomes invalid.

One of the most important levels that has to be observed here is the critical pivot of USD 9,200. A loss of this level would guarantee a test of the area between USD 8,400 – USD 8,700 and a possible continuation towards the region of USD 7,500.

Usually, The market should maintain its upward momentum as long as USD 9,200 is held, which would also increase the chances of testing new annual highs.

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

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