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…