The price of Bitcoin (BTC) held the crucial support level of $9,000, after which a rally to $9,600 occurred, as anticipated in last week’s technical analysis. Nevertheless, the overall market trend for BTC price has not broken out of its range since the halving in May.
The support area is $8,800-9,000, while the resistance can be found between $10,100-10,300. The volatility and volume have been decreasing as this range has been narrowing. So when can the market see volatility and big moves again?
Crypto market daily performance. Source: Coin360
The price of Bitcoin held key support level
As the chart shows, the crucial support levels for Bitcoin were held this past week. The support area between $8,800-9,000 was a vital one to hold as this was the previous low.
BTC/USDT 1-day chart. Source: TradingView
The primary reason this was a key support level is because of the upward trend structure. As long as the price makes higher lows, the uptrend remains valid. If the price of Bitcoin loses the previous low, the price would start to accelerate downward. The likelihood of many stop/loss triggers getting hit is high, increasing the chances of a $1,000 downward candle.
However, the price of Bitcoin bounced after holding the crucial support level. Thus, the ascending triangle construction remains intact. Moreover, the 100-day and 200-day moving averages (MAs) are beneath the current price level. As long as these remain below the price, BTC is in bull territory.
Finally, as the ascending triangle construction shows, the price of Bitcoin can remain inside the range for one or two months more.
BTC/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows a clear breakout of the $9,200 resistance level, resulting in a significant upward move. BTC/USD is currently resting at the $9,650 resistance level as this level was untested during the previous downturn.
As stated previously, a major parabolic is unlikely to happen so soon, as the price has some more untested levels above, namely $9,900 and $10,100.
The most likely scenario would be a “staircase” pattern. In that regard, the price of Bitcoin rallies towards the resistance zone rejects and then successfully tests the previous resistance zone for support. Next, the price move is likely to accelerate upward once Bitcoin breaks above the high of $10,100.
The total market capitalization of crypto breaks out
Total crypto market capitalization 1-day chart. Source: TradingView
The total crypto market capitalization shows a clear breakout from $270 billion. This level is comparable to the $10,100 level for Bitcoin. However, the total market cap is breaking out already, while Bitcoin is still stuck in its narrow range.
Overall, the bullish case remains for the total cryptocurrency market cap if the support level between $265-270 billion holds.
Altcoins showing more strength than Bitcoin
Total altcoin market capitalization 1-day chart. Source: TradingView
The total market capitalization is breaking out already while…