The price of Bitcoin (BTC) fell sharply the previous week, falling from $ 19,500 to $ 16,000. Corrections never go smoothly, as falls are often sudden and painful. The most recent correction is not much different as the drop occurred within hours.
Since then, Bitcoin price has consolidated over $ 16,000, marking a temporary floor. The main question is whether or not the correction has ended. A determining factor will be whether the price of Bitcoin can regain the crucial levels that support further upward momentum.
According to Coinmarketcap, Bitcoin’s market capitalization is currently $ 328,591,680,245.
Bitcoin is in the middle of a weekend rally
As the daily chart shows A critical support zone has been established around the $ 16,000 zone. Bitcoin price lost the uptrend in shorter periods of time, creating a chain reaction of sell-offs. This chain reaction caused the price to accelerate the downward trend.
The price of Bitcoin often goes up the stairs and down the elevator. When that happens, The daily time frame marks the crucial support levelswhich makes the roughly $ 16,000 area a great area to maintain.
The graph shows temporary support and rallies in this zone while Bitcoin price is currently $ 1,400 above the support level.
Bitcoin needs to break above $ 18,000 to go bullish again
The hourly chart is showing a significant downtrend from the $ 18,600 support level that caused the chain reaction to the downside.
However, during this correction, some lower time frames are showing critical levels of resistance from the $ 18,000 level. Bitcoin price fell towards the support zone to $ 17,200, rebounding slightly but failed to break above $ 18,000.
As a result of this failure to break out of $ 18,000, a zone of resistance is established.. This resistance zone must break to maintain bullish momentum and then return to the upside in the lower time periods.
The next hurdle is in the $ 18,600 area, which was unsupported on the previous bullish rally.
The total market capitalization is set lower
The daily chart of total market capitalization shows an obvious breakdown down since Total market capitalization fell sharply after hitting the Fibonacci level of 1.618.
However, the bullish part is a new high and a breakthrough above the $ 400 billion resistance zone.
In the previous period, the massive resistance zone of 400 billion US dollars was never confirmed by a new test. In this perspective Another correction towards $ 400 billion should confirm that the previous resistance zone is turning into support.
What is one of the likely scenarios for the price of bitcoin?
The most likely scenario would be a relief rally in the $ 18,000-18,500 range.. With that, the range from 18,000 to 18,500 US dollars is immediately the core of the described scenario.
If the $ 18,000-18,500 area breaks, another sustained rebound to new all-time highs is very likely.. However, if this resistance zone is not broken, a new area is created.
This area moves between $ 16,000 and $ 18,000 with the resistance at $ 18,000 confirming a new lower high. Lower highs suggest a downtrend, so the market could expect further corrections in the south.
In this sense, A correction towards USD 14,000 is currently not unlikelyThis is the previous June 2019 high and could warrant a big change in support / resistance for markets.
If the price of Bitcoin continues to stay above $ 14,000, the next spike will likely cause the price of Bitcoin to break above $ 30,000.
The views, thoughts and opinions expressed here are solely those of author and do not necessarily reflect or represent the views and opinions of Cointelegraph. Every investment and trade movement is associated with risks. You must do your own research when making a decision.
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