Bitcoin Breaks 7-Month Downtrend But Must Clear These Hurdles to $10K

The price of Bitcoin (BTC) establish potent back up at $8,200 last week, later which information technology started to rally toward $eight,800 earlier today.

Alongside with that, the total marketplace capitalization of crypto found a support at $215 billion and starting to look bullish. Will this mean that the correction is over, and crypto is trending upwards?

Crypto market place daily performance. Source: Coin360

Bitcoin still in an uptrend since the low at $half-dozen,500

Bitcoin is still trending upwards since the low at $half-dozen,500, every bit previous resistance zones have become support. A recent example is showing a bounce on the green expanse, which is the $eight,200 level. This blazon of bullish support/resistance flips is a common occurrence in an uptrend marketplace.

BTC USDT 1-24-hour interval chart. Source: TradingView

A suspension beneath $8,200 would have demonstrated weakness, every bit that level would not take provided plenty ownership pressure and support. Losing such a level would usually take been followed past a continuation downward. An case is found after the push button to $10,000 in November 2022.

The chart is too showing a clear breakout from the 7-month downtrend. A retest was done at $7,600, after which the price of Bitcoin rallied towards $ix,200 for temporary resistance.

BTC USDT 4-60 minutes chart. Source: TradingView

The 4-hour chart of Bitcoin is showing a healthy support/resistance flip at $eight,200, later which price bankrupt through the $8,500 resistance. Currently, the cost of Bitcoin is facing the side by side resistance at $eight,800.

Withal, it's quite unlikely to run across an immediate quantum at this level as the indicators on smaller time frames show burnout of this upwards move.

Additionally, some meaning resistances are shown on the chart, i.e. $9,000 and $nine,200-ix,400, which are two hurdles to overcome if the price of Bitcoin wants to continue moving upwards.

On the support side, a retest of $eight,500 looks quite good for you for confirmation of new support. Range-bound movements are now probable to happen if price can't pause through $8,800 or drop below $8,500.

Total marketplace capitalization flips a crucial level for back up

Full market capitalization cryptocurrency chart. Source: TradingView

The full market capitalization of cryptocurrencies is showing an essential bounce from the blueish zone (level around $217-218 billion). A retest in that location was quite healthy as anticipated in a recent article.

This retest is at present completed and shows intense buying pressure as the total market capitalization has already rallied up to $238 billion. This retest also indicates confirmation of the uptrend with the full marketplace cap breaking the seven-month downtrend besides.

The kickoff hurdle to overcome now is the $247 billion level. If that is broken, continuation towards $270 and $300 billion is probable to occur.

Altcoins showing more strength than Bitcoin

The total market capitalization chart of altcoins is looking healthy The market cap rallied from $52 billion to $eighty billion. Just a slight retracement occurred to $71 billion, which means that it is stuck in a narrow range.

Full altcoin market capitalization chart. Source: TradingView

If we cheque the rest of the chart, we tin spot many tests of the $lxxx billion level in recent months. Around 3 tests have happened prior to this latest one, which ways that the resistance should become weaker.

Remember, the more than times a resistance gets tested, the more exhausted sellers will become, and the weaker a resistance becomes. On the other manus, this also happens with support zones. The $6,000 support of Bitcoin in 2022 was tested many times before it broke down.

Given that these tests of the $80 billion level occurred quite oftentimes, a breakout to the upside is the most likely scenario at this point, meaning that the altcoin market cap could rally towards $120 billion.

The bullish scenario for Bitcoin

BTC USDT 4-hr chart bullish scenario. Source: TradingView

The virtually bullish scenario would exist a clear breakout of $8,800 and a continuation from there. However, as stated before, I find it unlikely to encounter such a motion occur in i go.

A retest and consolidation would be more probable including a likely retest of the $8,500. This is healthy and would be most required before the toll of Bitcoin tin can proceed to face up higher resistance levels.

If Bitcoin tin can agree the $viii,500 surface area for support, I see a breakthrough of the $8,800 and $9,000 as likely, after which $ten,000 will become the main target. Moreover, immigration $ten,000 could bring the price of Bitcoin towards $11,000 likewise.

The bearish scenario for Bitcoin

BTC USDT iv-hr chart bearish scenario. Source: TradingView

Typically, the bearish scenario has a similar pattern in the offset, as BTC needs to be rejected at the $eight,800 level. However, the difference is in the subsequent pattern.

If the cost of Bitcoin is to brand lower highs with weak bounces, the downward tendency is probable to resume. If this occurs, I'd be aiming for surly retest (support/resistances flips) of the $8,500 level as a potential brusk opportunity. The main target would then exist the $seven,600 area.

But offset, the price needs to exist rejected at $eight,800-nine,000 to get these scenarios going. Overall, the $viii,100 back up/resistance flip doesn't say that we're bearish at this point. Especially, since that price has broken at a vii-month downtrend.

The views and opinions expressed here are solely those of the author and do not necessarily reverberate the views of Cointelegraph. Every investment and trading move involves risk. Y'all should behave your own research when making a decision.

Source: https://cointelegraph.com/news/bitcoin-breaks-7-month-downtrend-but-must-clear-these-hurdles-to-10k

Posted by: trosclairunflithen.blogspot.com

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