The price of Bitcoin has remained above the key support level of $9,000 and is preparing for the big moves that may occur next week. The price of Bitcoin (BTC) continued to be weak last week because of multiple tests of the $9,000 support.
However, the market itself is not bearish because altcoins like DOGE fluctuate from side to side.
Is the market ready for BTC (the number one cryptocurrency by market capitalization) to change momentum and volatility?
Is Bitcoin plays a role at the final level to support the proof bull market scenario?
Due to the deadlock between bulls and bears, the price of Bitcoin is still at an important support level.
As the price of Bitcoin has been consolidating, there is a saying that the price has been falling continuously since March 12. The most recent low is between 8,700-8,900 US dollars. That is a bullish situation.
However, since the highest price of $10,300, the price has been declining and has been at a low high since. Due to the bullish and bearish arguments, this has led to an overall market conflict.
As shown in the chart, Bitcoin prices are currently above the 100-day and 200-day moving average (MA). At the same time, the key support level of $8,700-8,900 is still maintained, and a smaller support level of $9,050-9,100 has also been established, which is the current level of BTC/USD.
At the same time, if the price of Bitcoin breaks through $9,300 in the short term, an ascending triangle may be formed at any time.
The 4-hour chart shows that the level of 9,150-9,200 USD has collapsed. The resistance level is currently being tested and the support/resistance level is confirmed to be reversed because it is currently supported at the 9,000-9,050 USD level.
For the recent Bitcoin price movement, this is extraordinary because the level has become very narrow, resulting in very small price changes.
Besides, since prices fluctuate within such a small range, the quantity decreases. Trading volume usually occurs through any structural breakthrough, which is likely to happen next week.
The total market capitalization shows greater strength than Bitcoin
The market capitalization shows greater strength than the price of Bitcoin. The market value shows a clear upward trend, which has converted each previous resistance level to a support level, such as $255 billion (above the green box).
The next major step in the market value breakthrough is $270 billion. If this level is broken, it may move towards 305 billion US dollars.
The total market capitalization shows a higher strength than Bitcoin because of the latest strength of altcoins.
The total market capitalization of altcoins shows a clear breakthrough, with support/resistance between $9.1-92 billion.
As long as the green box can still support and the total market value of the altcoin will not fall below, the altcoin may continue to rise. The next area of concern is $113 billion, which is about 20% of this.
Bitcoin’s bearish situation
The bearish scenario involves rejecting the $9,200 level and then losing the support level of $9K. Every rejection of the resistance level against the previous support level will indicate further downward momentum for BTC and the price becomes more likely.
These signals confirm for traders that the price of Bitcoin is ready to fall further. However, if the price of gold breaks through $9,200 and approaches $9,400, it will lose $9,200 as support, which also means that no buyer has intervened-this is another bearish signal.
As Bitcoin breaks through the $10,500 mark, its price is likely to accelerate its rise. If the $8,600 support level is not held, the bearish situation is just the opposite.
This is most likely because there are not many support levels below $8,600, which indicates that the price may fall rapidly by $1,000 within a few hours. After all, the trader’s stop-loss/loss may also increase downward pressure, and the price falls below the critical Two-month long-term support level.
Bitcoin’s bullish situation
The bullish scenario is mainly built around breaking the $9,200 resistance level, and another test of the support level may affect the bullish scenario.
The chart shows a lot of untested upsides, if it breaks through $9,200, it may be tested.
The first potential resistance level after $9,200 is at the $9,400 resistance level. As shown in the figure, there is no “test” on the previous level. Testing means that the price rebounds to that level to confirm the rejection of that level. This rejection can be classified as resistance and then the price reverses.
However, the chart shows many untested levels above the current price level. For example, not only is $9,400 untested, but a similar situation can be seen for $9,600 and $9,800.
If the price of Bitcoin breaks through $9,200, then the support/resistance reversal of this level will soon increase the likelihood of $9,600.
A break above $9,200 also formed a rising triangle structure. Then, the price becomes more likely to test and revisit the $10,000-10,500 area, and it may break further upwards.