Bitcoin price is looking to retake the key psychological level at $10,000, which may now propel BTC to multi-year highs.
The price of Bitcoin (BTC) had seen a substantial rally before the halving, as the price topped at $10,100. Since then, the BTC price has been hovering inside a sideways range between $8,200 and $10,000.
However, are the markets making itself ready for a breakout above this crucial resistance? Bitcoin is showing strength, but other cryptocurrencies like Ethereum’s Ether (ETH) and Cardano (ADA) are also showing strength with double-digit performances in the past week.
Crypto market daily performance. Source: Coin360
Bitcoin facing $10,000 resistance as a crucial level to break
The 6-hour chart is showing a clear range-bound structure since the high at $10,100. The market showed a pre-halving crash (i.e. buy the rumor, sell the news), after which the price stabilized and consolidated.
BTC/USD 6-hour chart. Source: TradingView
The chart is showing a breakdown of the rising wedge at $9,800, after which support was found at $8,600. That’s important, as that shows another higher low. The critical fact is that the market has been providing these higher lows since the crash on March 12.
Therefore, Bitcoin is still trending upward since. What’s more, is that the price of Bitcoin was able to break through the critical level at $9,300. As long as Bitcoin remains above the $9,300 level, a further upward move can occur to retest the resistance zone at $9,800-10,100, increasing the chances of a breakout to the upside.
Once Bitcoin can do so, the next targets are $11,000 and $11,500, leading to a further surge of the whole cryptocurrency markets.
Total market capitalization cryptocurrency ready for a move towards $310 billion
The total market capitalization of cryptocurrencies is showing support above the 100-day and 200-day MA (moving average). The total market capitalization has consolidated inside a range as well, with support at $225 and resistance at $267-268 billion.
Total cryptocurrency market capitalization 1-day chart. Source: TradingView
The construction is a good sign for further upwards momentum, as the total market capitalization is also showing higher lows as a trend. Next to that, the market is in bullish territory as long as the 100-day and 200-day MAs remain support.
The previous cycle sustained support above these MAs during the entire cycle, which makes it an essential indicator.
Total cryptocurrency market capitalization 4-hour chart. Source: TradingView
The 4-hour chart is also hinting further upwards momentum as a clear ascending triangle is emerging.
At $265-267 billion, the resistance area has been tested several times, which makes the resistance weaker on each test. The total market capitalization is making higher lows, which makes this an ascending triangle.
In other words, another test of the resistance can be a trigger for a breakout and further upward momentum. The next targets for the total market capitalization are $310 and $325 billion.
Altcoin market capitalization showing impressive strength
Total altcoin market capitalization cryptocurrency 1-day chart. Source: TradingView
The altcoin market capitalization finally flipped the 100-day and 200-day MA as support. Not only these MAs are providing support, but $70 billion is also currently holding. That’s opening the doors for further upwards momentum as the altcoin market capitalization broke above $82-83 billion in recent days.
What are the next targets for this market capitalization? The following primary resistance is found at $110-115 billion.
Ethereum leading with a rally towards $240
The most important indicator for altcoins is Ether. Once ETH starts to move, the other altcoins are ready to follow suit. In recent days, Ethereum moved from $195 and $240, which is a strong signal for altcoins to follow.
ETH/USDT 1-day chart. Source: TradingView
The chart of Ether price is identical to the altcoin market capitalization. ETH found support above the 100-day and 200-day MAs while showing increased volume, a sign of strength.
Alongside with that, the $195 level flipped for support, which triggered a further continuation to the upside. As the $215 level has been tested several times, a next test would mean a breakthrough of that resistance level.
The price of Ether broke through the barrier and is currently rallying towards the next resistance level at $250-253. If the price of Ethereum breaks through that resistance level, the next zone is $290.
The bearish scenario for Bitcoin
BTC/USD 3-hour chart. Source: TradingView
Bitcoin’s bearish scenario involves a rejection at $9,800, but more importantly, a breakdown below the $9,300 support area.
If the $9,300 area is lost, further downwards is likely to occur. Traders should watch for potential bearish retests of previous support levels. Such a bearish retest marks the previous support level for resistance, in which further downwards momentum is warranted. The essentials of a downwards trend.
The primary area to watch for if the price of Bitcoin drops below $9,300 is the $8,600-8,800 support zone.
The bullish scenario for Bitcoin
BTC USD 3-hour chart. Source: TradingView
The bullish scenario is straightforward. The price of Bitcoin needs to hold above the green area at $9,300. As long as that level remains support, further upwards momentum should be expected.
In that regard, an upward grind towards the resistance at $9,850-10,100 can be expected. As discussed, once the upper resistance level is tested a few more times, the expectations of a breakout to the upside are increasing.
If Bitcoin breaks through this resistance level, a further sustainable rally towards $10,500, $11,000, and $11,600 is on the table.
The best environment for altcoins is a slow, upward move following Bitcoin. As we’ve seen in recent days, other altcoins like Ether and Cardano have started to show strength. If Bitcoin remains to move to the upside, more altcoins can see upward breakouts.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
