The price of Bitcoin (BTC) stagnated between $ 6,600 and $ 7,200 for a few weeks, but finally there was a breakout, which means a 10% increase to $ 7,750.
However, Bitcoin is not the only cryptocurrency that has shown strength as alternative currencies follow: Cardano (ADA) jumps 22% and Ethereum (ETH) 16%.
So what can you expect from the markets a little more than two weeks before Halving Bitcoin?
Daily performance of the cryptocurrency market. Source: Coin360
Bitcoin breaks the key resistance at $ 7,200, but is next ahead of $ 7,800
Bitcoin’s price stagnated between $ 6,800 and $ 7,300 for a few weeks, so the price remained undecided in which direction to go. The clear answer was given by a crucial breakout above the USD 7,300 resistance zone, as the graph shows.
4 hour BTC / USDT pair table. Source: TradingView
Bitcoin’s price held the $ 6,800 range earlier this week as a support, after which it began to rumble to test resistance. These broke higher and pushed many shorts off the market.
This reduction led to an increase to the next resistance level at USD 7,700-7,800, as the graph shows.
A new area for Bitcoin is currently defined. Resistance ranges from $ 7,700 to $ 7,800, while support ranges from $ 7,275 to $ 7,350. As long as the price of Bitcoin remains above this support level, further upward pressure and momentum are needed, especially towards halving.
The $ 9,000 CME gap is still at stake
1-day CME-BTC chart. Source: TradingView
The CME Futures BTC chart contains data on “gaps”. These gaps arise on weekends because CME futures are not open on Saturdays and Sundays. Gaps are often used as an additional narrative for traders to trade, which makes the current market advantage interesting.
The graph shows a significantly large gap between $ 8,280 and $ 9,055 that is likely to occur at some point. Along with the current gap structure, there are some other gaps on the top as there are others, especially at $ 10,100 and $ 11,675.
The 100-week MA claims weekly as support
BTC / USD 1-week chart. Source: TradingView
Bitcoin’s weekly chart shows significant progress in 100-week MA. A degree above the 100-week MA would strengthen the market.
However, further upward momentum should be guaranteed if the horizontal resistance is higher at $ 7,700. As shown in the graph, the additional continuation towards the $ 9,000 is in the charts when $ 7,700 is broken.
The entire market capitalization is supported with $ 190 billion and is on the next level
1-day chart of the total capitalization of the cryptocurrency market. Source: TradingView
The diagram of the total capitalization of the cryptocurrency market offers a clear view. The $ 190 billion zone remained in support, which was critical to any further upward momentum.
Currently, the total market cap chart is facing the next level of resistance of $ 220 billion. A break above this level would guarantee further upward momentum towards $ 235 to $ 245 billion for cryptocurrency markets.
What are the main levels of support now?
On the chart, I would like to see $ 202-207 billion in support as this is the resistance that market capitalization has broken. Once market cap falls below this level, further downside evidence of $ 175 billion will be on the table again.
The market capitalization of altcoins has increased by more than 100% in the past few weeks
1-day cryptocurrency market cap chart. Source: TradingView
Altcoin’s market cap shows strength as capitalization has risen 111% since the big crash on Black Thursday.
Similar to the total market capitalization, a breakout above the green level has occurred in the past few days, which has led to upward movements of various old coins.
The next resistance to breaking is the level of around $ 79-80 billion. After that, further upward momentum towards USD 92-94 billion is likely. However, a loss of green values and tests of $ 66 and $ 57.5 billion is expected.
The bullish bitcoin price scenario
Bullish scenario chart of the BTC / USD pair for 4 hours. Source: TradingView
In both cases, both scenarios are fairly straightforward since Bitcoin broke out of a page area. As long as green levels remain around $ 7,300 support, further upward momentum is at stake.
The narrative of halving is also becoming increasingly important. Such a narrative could create FOMO (fear of loss) and create a little more buying pressure before the event. However, it must be borne in mind that these events usually end with the form “Buy the rumor, sell the news”. In other words, a big post-event sales move shouldn’t be unexpected.
In any case, support of $ 7,300 reinforces the bullish argument. Bitcoin price could hover in this area for a while before attacking any of the levels.
A breach of the zone of $ 7,700 would likely justify further upward momentum with targets of $ 8,500 and $ 9,000 (as this is also the CME gap).
The bearish scenario for the price of Bitcoin
Graph of the downward scenario of the BTC / USD pair for 4 hours. Source: TradingView
The bearish scenario is also straightforward. If the price of Bitcoin rises towards resistance but then sells, a temporary rise is likely. Especially since the $ 7,700 range was the last level of defense before the BTC price drop on Black Thursday.
If this level cannot be used as support, the lower levels need to be re-examined before the market can regroup for other upward moves.
A sell-off leading to a re-test of $ 7,250 and an immediate rejection of $ 7,400 would therefore be a sign of further downward momentum with the next targets at $ 6,800 and $ 6,500.
The views and opinions expressed here are solely 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.