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The price of Bitcoin (BTC) has stagnated between $ 6,600 and $ 7,200 for a few weeks, but finally, an upside breakout occurred, signifying a 10% boost towards $ 7,750.
But Bitcoin is not the only cryptocurrency that has shown strength as alternative currencies are also following suit with Cardano (ADA) jumping 22% and Ethereum (ETH) 16%.
So what can you expect from the markets a little over two weeks before Bitcoin’s halving?
Daily performance of the cryptocurrency market. Source: Coin360
Bitcoin breaks crucial resistance at $ 7,200 but faces $ 7,800 next
Bitcoin’s price stagnated between $ 6,800 and $ 7,300 for a few weeks, making the price undecided in which direction it wanted to go. The clear answer was given by a crucial breakout above the $ 7,300 resistance zone, as the chart shows.
4-hour BTC / USDT pair chart. Source: TradingView
Bitcoin’s price held the $ 6,800 area earlier this week as support, after which it began to rumble to test resistances. These broke higher, squeezing a lot of shorts from the market.
This reduction resulted in a push to the next resistance level at $ 7,700-7,800, as the chart shows.
Currently, a new range is defined for Bitcoin. Resistance is in the $ 7,700-7,800 area, while support is between $ 7,275 and $ 7,350. As long as Bitcoin’s price remains above this support level, further upward pressure and momentum are warranted, especially towards halving.
The $ 9,000 CME gap is still at stake
1-day CME BTC chart. Source: TradingView
The CME Futures BTC chart provides data on “gaps”. These gaps are created over the weekend as CME futures are not open on Saturdays and Sundays. Gaps are often used as an additional narrative for traders to trade, making the current market edge interesting.
The chart shows a significantly large gap between $ 8,280 and $ 9,055, which is likely to occur sometime. Along with the current gap structure, there are several other gaps on the upside as there are others, specifically at $ 10,100 and $ 11,675.
Weekly claims the 100-week MA as support
1 week chart of BTC / USD. Source: TradingView
Bitcoin’s weekly chart shows a clear advance in the 100-week MA. Closing above the 100-week MA would strengthen the market.
However, further upside momentum should be guaranteed if the horizontal resistance level at $ 7,700 breaks higher. As shown in the chart, the additional continuation towards $ 9,000 is in the charts if $ 7,700 is broken.
Total market capitalization is supported at $ 190 billion and is facing the next level
1-day chart of the total capitalization of the cryptocurrency market. Source: TradingView
The chart of the total capitalization of the cryptocurrency market offers a clear view. The $ 190 billion zone has remained as support, which was crucial for any further bullish momentum.
Currently, the total market capitalization chart is facing the next resistance level of $ 220 billion. Breaking this level would guarantee further bullish momentum towards $ 235-245 billion for cryptocurrency markets.
So what are the key levels of support now?
On the chart, I would like to see $ 202-207 billion remain as support, as that is the resistance that market capitalization broke. Once the market cap breaks below this level, further downside evidence of $ 175 billion is back on the table.
Altcoins market capitalization increased more than 100% in recent weeks
1-day chart of cryptocurrency market capitalization. Source: TradingView
The altcoin market capitalization is showing strength as the capitalization has gained 111% since the big crash on Black Thursday.
Similar to the total market capitalization, a breakout above green levels has occurred in recent days, leading to upward movements of various altcoins.
The next resistance to break is the level of around 79-80 billion dollars. Thereafter, further upward momentum is likely towards $ 92-94 billion. However, a loss of green levels 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
Either way, both scenarios are fairly simple, given that Bitcoin broke out of a side range. As long as the green levels around $ 7,300 remain as support, further upside momentum is at stake.
Also, the narration of halving is becoming increasingly important. Such a narrative could create FOMO (fear of getting lost) and generate a little more buying pressure before the event. However, it must be borne in mind that these events usually end in a “buy the rumor, sell the news” form. In other words, a big post-event sales move shouldn’t be unexpected.
In any case, having $ 7,300 as support reinforces the bullish argument. Bitcoin price could be hovering around this range for a while before attacking any of the levels.
A breakthrough of the $ 7,700 zone would likely justify further upside momentum with targets of $ 8,500 and $ 9,000 (since that’s also the gap for the CME).
The bearish scenario for the price of Bitcoin
Graph of the downside scenario of the BTC / USD pair for 4 hours. Source: TradingView
The bearish scenario is also straightforward. If Bitcoin’s price starts to climb towards resistance but then sells, a temporary rise is likely. Particularly since the $ 7,700 area was the last level of defense before Black Thursday’s BTC price drop.
If that level cannot be claimed as support, the lower levels must be re-examined before the market can regroup for any other upward movements.
Therefore, a sale resulting in a retest of $ 7,250 and an immediate rejection of $ 7,400 would 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 the Author and do not necessarily reflect Cointelegraph’s views. Every investment and trade move involves risk, you must conduct your own research when making a decision.
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