Bitcoin Price Ping Pong Within Tighter Range Hinting at $Eight.5K Next

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The worth of Bitcoin (BTC), the top-ranked cryptocurrency by market capitalization, has seen a spike in direction of $10,500 earlier than the halving passed off on Could 11. Nevertheless, the value of Bitcoin has been having issues for the reason that halving and is at the moment exhibiting extra indicators of weak point.

Alternatively, altcoins have been beginning to present indicators of life with the BTC market dominance index sliding from 67% to 65% after the halving. Is the momentum now shifting in direction of altcoins from Bitcoin as essentially the most anticipated occasion is behind us? 

Crypto market day by day efficiency. Supply: Coin360

Bitcoin worth is hovering inside a variety as volatility drops

The worth of Bitcoin is caught inside a variety as the subsequent chart exhibits. The resistance space within the pink zone between $9,800 and $10,100. On the similar time, the value is discovering help within the $Eight,250-Eight,500 space.

Moreover, BTC is shifting above the 100-day and 200-day shifting averages (MA), a bullish signal for the markets. 

BTC USD 1-day chart. Supply: TradingView

Because the halving hype is slowly fading and the market goes again to its day by day rhythm, the value of Bitcoin can also be stabilizing. Is that uncommon? 

No, that’s regular. The halving was such an enormous occasion for Bitcoin that the hype on social media can create unsustainable worth rallies and drops across the occasion. 

BTC USD 2016 halving 1-day chart. Supply: TradingView

The earlier halving exhibits an analogous construction. The worth of Bitcoin moved considerably within the run-up to the occasion, then a pre-halving crash occurred and a brand new vary was established. All through the month, the value of Bitcoin consolidated inside a spread. 

Afterward, yet one more drop occurred and the market continued its upward momentum whereas holding the 200-MA as help till the height in December 2017.

Bitcoin fails to interrupt $10,000 and drops out of the rising wedge

BTC USD Four-hour chart. Supply: TradingView

Because the Four-hour chart is exhibiting, the value of Bitcoin misplaced the rising wedge construction and broke down. In different phrases, one other failure breaking by way of the $10,000 psychological barrier.

Alongside the drop, the value misplaced the help at $9,300. Current strikes have additionally confirmed this stage as resistance as nicely. Nevertheless, help was discovered at $Eight,900 because the chart is exhibiting.

What’s subsequent? Is the upwards momentum over? Or is the market merely returning again to regular with altcoins gaining extra consideration?

Complete market cap holds above 200-day MA

Complete market capitalization cryptocurrency 1-day chart. Supply: TradingView

The entire market capitalization continues to be holding the 100-day and 200-day MAs as help, which is essential for additional upwards momentum.

Nevertheless, the market cap itself is at the moment consolidating after a 120% surge in a matter of eight weeks. What’s the essential stage to carry? It’s the gray field at $220-225 billion. 

If that stage stays help, the whole market cap shall be in prime place for a surge towards $300+ billion, presumably even $360 billion. Nevertheless, dropping that key stage can see a quick drop.

The importance of this stage lies in the truth that it’s each the 100-day and 200-day MA performing as help confluent with a robust horizontal help stage, which served as help all through 2018. 

Complete market capitalization cryptocurrency 1-day chart. Supply: TradingView

Thus, not solely will $220-225 billion stage holding as help be a robust sign for additional upwards momentum, however it might additionally make the March 12 crash one huge shakeout for the whole cryptocurrency market. 

Lastly, the quantity indicator is exhibiting a rise in quantity. That is one other robust sign as this may counsel extra accumulation. 

Altcoin market capitalization nonetheless lagging behind

Complete altcoin market capitalization cryptocurrency 1-day chart. Supply: TradingView

The entire altcoin market capitalization chart exhibits a robust help/resistance flip of $70 billion, a stage that’s additionally confluent with the 100-day and 200-day MAs as help. That is vital because the market cap didn’t lose these MAs throughout the earlier crypto bull market cycle.

Nevertheless, as Bitcoin had important help in 2018 at the $6,000 stage, the whole market capitalization had executed the identical with $220-225 billion. However now, the whole market cap is once more holding the $220-225 billion stage as help whereas the value of Bitcoin is now 50% increased.

The altcoins by themselves are additionally lagging closely as $113 billion is the 2018 help stage comparable with the $6,000 stage for Bitcoin.

Complete altcoin market capitalization 1-day chart. Supply: TradingView

The chart above exhibits that altcoins have been lagging typically. Is unhealthy factor? No, Bitcoin is a primary mover and likewise peaked first in December 2017, after which the altcoins adopted.

Proper now, Bitcoin had its first run pre-halving in direction of $10,200. However the quantity is now additionally rising for altcoins. Which means demand and curiosity are rising doubtlessly setting the stage for altcoins to lastly catch up.

The bullish situation for Bitcoin 

BTC USD bullish situation Four-hour chart. Supply: TradingView

The gray zone (with a possible wick in direction of $Eight,950) wants to carry. After that, a breakout of $9,300 is required to ultimately push the value towards $9,600 or increased.

If such a transfer happens, a retest of the vary excessive between $9,800-10,100 is probably going as the subsequent step. As this stage has been examined many instances already, the resistance stage ought to be weaker as a rule.

In that regard, if this situation performs out, a breakout to the upside might see the value of Bitcoin doubtlessly run towards $11,000 or $11,500.

The bearish situation for Bitcoin 

BTC USD bearish situation Four-hour chart. Supply: TradingView

Nevertheless, as soon as the value of Bitcoin isn’t in a position to break by way of the $9,300 barrier, retests of the lows ought to be anticipated. Ranges to check could be $Eight,800 (already examined as soon as already), however, extra importantly, $Eight,200-Eight,500 help of the present vary. 

Nonetheless, this may nonetheless not be catastrophic for Bitcoin typically. The construction would nonetheless stay in an upward trajectory since March 12. The worth has been making increased highs and better lows since then, which is by definition a robust upward development. Consolidation is, in truth, wholesome for the market if new highs are to be established. 

The views and opinions expressed listed here are solely these of the writer and don’t essentially replicate the views of Cointelegraph. Each funding and buying and selling transfer includes danger. It’s best to conduct your individual analysis when making a choice.



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