Bitcoin price has remained above $10,000 for some time, but will the momentum tip back in the bulls favor for a retest of the key multi-year resistance at $12K?
The recent week has been relatively dull on the price movements of Bitcoin (BTC), as a slow upward trend was established after Bitcoin’s price found a footing at above $10,000. This rally then continued toward $11,000 on Sep. 18 but was pushed back by some short-term resistance levels.
The previous week has been focused solely around Uniswap (UNI) and the airdrop of its token, combined with several listings on high-end exchanges. At the same time, let’s take a look at the price of Bitcoin and its charts to gauge where the cryptocurrency market may be headed in the upcoming week.
Bitcoin is facing a crucial resistance between $11,200-11,400
BTC/USD 1-day chart. Source: TradingView
The daily chart of Bitcoin shows the slow upwards grind, which is currently facing a crucial resistance.
The $11,200-11,400 area has been acting as support for a substantial period before the big crash to $10,000 occurred. If this area between $11,200-11,400 can be broken, a retest of higher levels is back on the table.
However, as the chart also shows, the level to test around $9,600 (which is also the CME gap) wasn’t fully filled. The level got front-run by traders, and the price of Bitcoin bounced back above the $10,000 level.
A range can now be constructed with these two regions. On the downside, the $10,000 area is a significant support zone with the potential of $9,600 being hit. On the upside, the $11,200-11,400 area is a crucial resistance area to break.
Can the weekend see the $11,200 test?
BTC/USDT 2-hour chart. Source: TradingView
The 2-hour chart shows a clear picture of the current uptrend. Every previous resistance level flips for support to continue this climb higher.
The crucial hurdle to take is shown in the big red box is found between $11,200-11,400. If that resistance level breaks through, retests of $12,000 are back in play.
However, if the price of Bitcoin loses the $10,750 area, further downside becomes increasingly likely with the range lows around $10,000 as potential support levels.
The total market cap of crypto is in another accumulation range
Total market capitalization crypto 1-week chart. Source: TradingView
If you want to start analyzing charts, the higher timeframe ones are the best ones to start with. In this case, the total market capitalization of crypto presents some clear levels to watch.
As long as the market sustains above $250-255 billion, the market can be considered to be in a general uptrend. A fresh new higher high was printed and the market is currently seeking a new higher low.
Breaking through $400 billion may ignite some fireworks and push the value up to $500 and possibly $700 billion.
The possible scenario for BTC/USD
BTC/USDT 2-hour chart. Source: TradingView
It’s unlikely to expect a clear breakout of the $11,200-11,400 resistance area in one-go. I’m assuming we’ll see further range-bound movements after a rejection at the $11,200 area.
Key levels to watch include sustaining support at $10,750 and to resume the rally toward the resistance zone where a rejection will be the first thing to watch.
If a rejection occurs, a bearish retest and confirmation of resistance of $11,000 will warrant further downward momentum, as the chart shows.
BTC/USD 2-hour chart. Source: TradingView
In other words, a bearish retest of the $11,000 level will likely tile momentum to the downside and increase the retest of $10,600 and $10,200.
For the bulls, establishing new yearly price highs highly dependent on breaking the multi-year resistance level at $12K to continue the general uptrend for the rest of the year.
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.
