The price of Bitcoin (BTC) lies after its definitive zones of resistance until the bull market is on fire. However, will it break through in this attempt through this zone of resistance? The charts suggest that the $ 11,600-12,000 area is a crucial level to break if the price of BTC continues to move higher.
Because the price of Bitcoin could not break through that resistance zone, a slight drop occurred on Friday from $ 11,900 to $ 11,350, after which BTC has managed to pair the most losses since.
Crypto-market daily performance. Source: Coin360
Bitcoin has resistance against $ 11,800-12,000
BTC / USD are still fighting in the resistance zone at $ 11,800-12,000. Unfortunately, there has been no breakout yet, while silver and gold have shown more strength lately.
BTC / USD 1-day chart. Source: TradingView
The chart shows that there is a clear resistance zone at $ 11,800-12,000. This is a significant level, as it is the definitive untested level until Bitcoin enters the open air.
If there is a breakthrough in this resistance zone, the price of Bitcoin could easily run to $ 15,000-16,000. Such a run would only increase the FOMO, as fear of failure, in the markets.
However, such a run is unlikely at the moment, especially considering the recent breakout at $ 10,000.
In other words, because the price of Bitcoin went up vertically from $ 9,500 to $ 12,000, a breakout above this resistance becomes less likely because there is no buildup. If an asset wants to break through such a significant resistance, it usually tests the level multiple times before breaking through.
For example, the consolidation period (similar to the months after the recent halving of Bitcoin) resulted in the strength and momentum that BTC / USD eventually pushed above $ 10,000. However, a breakout above the resistance zone at $ 11,800-12,000 is not entirely out of the question.
Smaller time frames hold the $ 11,400 level and face resistance
When the price of Bitcoin dropped from $ 11,900 to $ 11,400 last Friday, the previous resistance zone was confirmed at $ 11,400 as support level. Such a test is called a flip for support / resistance and is very common across markets.
BTC / USD 2-hour chart. Source: TradingView
The diagram above shows clear resistances and support levels. The resistance zone can be found between $ 11,775- $ 11,850 and between $ 11,925- $ 12,100. The latter is the last hurdle before continuation to $ 15,000 can occur.
The green zone is a crucial support zone, between $ 11,300- $ 11,400, as mentioned just before the weekend testing.
However, volatility will increase if the price of Bitcoin breaks through either zone. If the price of Bitcoin breaks through the resistance zones, continuation is likely to reach $ 15,000. However, if the opposite happens and the price of Bitcoin loses $ 11,300, a drop to $ 10,700 will be the next level to test.
Total crypto-market cap has faces $ 350 billion resistance
Total crypto of market capitalization 1-day chart. Source: TradingView
The total market capitalization of crypto represents significant resistance, combined with the resistance of Bitcoin with $ 350 billion the last major obstacle before a move of 30% to $ 500 billion can occur.
The graph also shows that the total market capitalization is still trading above the 100 day and 200 day moving averages (MAs), a crucial signal for bull markets. If the market capitalization moves above these MAs, the market is in bull territory, and dips should be considered as buying opportunities.
In essence, the previous $ 290 billion resistance zone is the crucial level to maintain. As long as the total market capitalization of crypto remains above $ 290 billion, further upward momentum is likely.
The Bullish scenario for Bitcoin
BTC / USD bullish scenario 1-day chart. Source: TradingView
Breakout of $ 12,000 underpins the bullish scenario. If the resistance area finally breaks as resistance, $ 15,000, then becomes a likely target for the bulls.
However, a clear breakthrough through the $ 12,000 area can only be confirmed with a support / resistance flip. This would suggest that buyers step in as the previous resistance transforms into new support.
The bearish scenario for Bitcoin
BTC / USD bearish scenario 1-day chart. Source: TradingView
The bearish scenario means that $ 12,000 was not broken. If resistance continues to resist, a new renewed reach structure is likely to emerge in the coming weeks.
Another argument can be found in the forex markets. The recent eruption of Bitcoin occurred while EUR / USD broke up from 1.14 to 1.19. This breakout led to a drip of the USD against other currencies, which essentially triggered the massive breakouts in Bitcoin, gold, and silver prices.
As EUR / USD starts to correct from 1.19 to lower figures, the USD becomes stronger. Such a relief bounce is likely to trigger a further corrective movement on the crypto and commodity markets, and will lead to the scenario described above.
However, a reach period would not be bad for the markets because altcoins have done relatively well in these times. As the price of Bitcoin begins to correct, the focus could shift again to altcoins.
The opinions and opinions expressed here are only those of the author and do not necessarily reflect the views of Cointelegraph. Every move of investing and trading involves risk. You have to do your own research when making a decision.
