Bitcoin Price Charts Suggest $9K Deadlock May Finally End Next Week

Published at: July 18, 2020

The price of Bitcoin (BTC) has been continuing the previous week’s weakness as the support of $9,000 has been tested many times. However, the market itself is not acting bearish because altcoins such as DOGE, for example, are surging left and right. 

Is the market ready for a momentum shift and a big volatile move by BTC, the top-ranked cryptocurrency by market capitalization?  

Crypto market daily performance. Source: Coin360

Bitcoin acting on final levels for support to justify bull scenarios

The price of Bitcoin is still resting at a significant level of support as there is a stalemate in place between the bulls and bears.

As Bitcoin’s price has been consolidating, there’s an argument to be made that the price is making constant higher lows since March 12. The most recent low is the area between $8,700-8,900. That’s the bullish case.

However, the price has been dropping since the peak high at $10,300 and has been making lower highs since. That leads to the overall conflict in the markets as both bullish and bearish arguments exist.

BTC/USDT 1-day chart. Source: TradingView

Bitcoin price is currently above the 100-day and 200-day moving averages (MAs), as the chart shows. At the same time, the crucial support level of $8,700-8,900 is still holding and also established a smaller support level at $9,050-9,100, which is where BTC/USD is currently at.

Meanwhile, a potential ascending triangle is ready to form if the price of Bitcoin breaks above $9,300 in the short term.

BTC/USD 4-hour chart. Source: TradingView

The 4-hour chart shows a clear breakdown of the $9,150-9,200 level, which is currently being tested for resistance and a confirmation of this support/resistance flip as it’s currently being supported by the $9,000-9,050 level.

This is remarkable for Bitcoin’s price action lately, since the levels have become very narrow resulting in very small price moves. 

Additionally, as the price acts in such a small range, the volume decreases. Volume typically emerges via a breakout of any construction, which most likely is going to occur next week. 

Total market capitalization showing more strength than Bitcoin

Total market capitalization cryptocurrency 1-day chart. Source: TradingView

The market capitalization shows more strength than the Bitcoin price. The market cap is showing a clear upward trend that flipped each previous resistance level into support, such as $255 billion (upper green box). 

The next major step for market capitalization to break through is $270 billion. If that level breaks, a move toward $305 billion is likely.

Total altcoin market capitalization 1-day chart. Source: TradingView

The total market capitalization is showing more strength than Bitcoin because of the recent strength in altcoins as of late. 

The total altcoin market cap shows a clear breakout and support/resistance flip of $91-92 billion. As long as the green box remains to support and the total altcoin market cap doesn’t drop below, the altcoins will likely continue the rally.

The next area of resistance to watch is $113 billion, which is approximately twenty percent from here. 

The bullish scenario for Bitcoin 

The bullish scenario is primarily built around breaking through the $9,200 resistance level, and another test of the support level could impact the bullish scenario.

BTC/USD 4-hour bullish scenario chart. Source: TradingView

The chart shows many untested levels on the upside, which are likely to get tested if $9,200 gets broken through. 

The first potential level of resistance after $9,200 is the $9,400 resistance zone. As the chart shows, there’s not been a “test” of this previous level. A test means the price rallies towards this level to confirm a rejection by that level. Such a rejection can be classified as resistance, and then the price reverses.

However, the chart shows many untested levels above the current price level. Not only is $9,400 untested, but a similar case can be seen with $9,600 and $9,800, for instance. If the price of Bitcoin breaks through $9,200, a support/resistance flip of that level increases the likelihood of $9,600 shortly.

Breaking through $9,200 also forms the ascending triangle structure. Then it becomes massively more likely that the price will be testing and revisiting the $10,000-10,500 region and a possible giant breakout further upward. 

The bearish scenario for Bitcoin

BTC/USD 6-hour bearish scenario chart. Source: TradingView

The bearish scenario consists of rejecting the $9,200 level and then losing the $9K support level. Every rejection of the previous support level by the resistance would indicate further downward momentum for BTC the price becoming more likely.

These signals are confirmations for traders that the price of Bitcoin is ready for a further fall to occur. However, a breakthrough of $9,200 towards $9,400, after which $9,200 is lost as support would also mean that no buyers are stepping in — another bearish signal. 

As Bitcoin’s price is most likely going to accelerate once it breaks above the $10,500 barrier, the opposite is true for the bearish case if $8,600 support does not hold.

This is likely because there aren’t many support levels beneath $8,600, suggesting that the price can quickly drop $1,000 in a few hours as traders’ stop/losses may also add to downward pressure with the price dropping below a critical two-month-long support level. 

The next major support level beneath $8,600 is the $7,500 range.

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.

Tags
Related Posts
Bullish Bitcoin newsflow gives bulls a boost ahead of Friday's $565M options expiry
On Friday, June 11, a total of $565 million in Bitcoin (BTC) options are set to expire. This is significant because the last couple of weeks have been a massive deception for bulls. After all, the price was struggling to sustain the $33,000 support. However, an unexpected bullish turn of events led to an 18.5% hike from the $31,000 low on June 8 to $38,491 today. This strong move saved the bulls because any level below $34,000 would have wiped 98% of the current call (buy) options. Who saved the day? First, MicroStrategy, a publicly-traded company that holds over $3.2 …
Bitcoin / June 10, 2021
Bitcoin On-Chain Data Suggests Miners Expect Halving to Pump BTC Price
As the coronavirus pandemic continues to unfold and new signs of lockdowns beginning to be slowly lifted in Europe, all eyes in the crypto community are back on the Bitcoin (BTC) halving. The event is only 10 days away, and Bitcoin’s price seems to be acting accordingly, having surged an incredible 23% to a monthly high above $9,400 earlier this week. A widely celebrated event in the cryptocurrency industry, the halving is part of the Bitcoin monetary policy, in which every four years, the Bitcoin mining reward is cut in half. This means that on May 11, 6.25 BTC will …
Bitcoin / May 1, 2020
Did BTC Miners Crash Bitcoin Price With 51 Days Before the Halving?
Bitcoin (BTC) price has started to show strength in its recovery since the black Thursday selloff this past week, but is this something we can expect to continue? Or is this a dead cat bounce on the way down to lower lows? In today's analysis I’m looking not only at the charts, but also at the possibility of large Bitcoin miners being the cause of the 50% price drop on March 12, after supporting data emerged last week suggesting that short-term holders sold a whopping 281,000 BTC, which resulted in the crash. Daily crypto market performance. Source: Coin360.com Did miners …
Bitcoin / March 22, 2020
Elon Musk, Cathie Wood sound 'deflation' alarm — is Bitcoin at risk of falling below $14K?
Bitcoin (BTC) has rebounded by 20% to almost $22,500 since Sep. 7. But bull trap risks are abound in the long run as Elon Musk and Cathie Wood sound an alarm over a potential deflation crisis. Cathie Wood: "Deflation in the pipeline" The Tesla CEO tweeted over the weekend that a major Federal Reserve interest rate hike could increase the possibility of deflation. In other words, Musk suggests that the demand for goods and services will fall in the United States against rising unemployment. A major Fed rate hike risks deflation — Elon Musk (@elonmusk) September 9, 2022 Rate hikes …
Bitcoin / Sept. 12, 2022
Total crypto market cap falls to $840 billion, but derivatives data shows traders are neutral
The total cryptocurrency market capitalization dropped 1.5% in the past seven days to rest at $840 billion. The slightly negative movement did not break the ascending channel initiated on Nov. 12, although the overall sentiment remains bearish and year-to-date losses amount to 64%. Bitcoin (BTC) price dropped 0.8% on the week, stabilizing near the $16,800 level at 10:00 UTC on Dec. 8 — even though it eventually broke above $17,200 later on the day. Discussions related to regulating crypto markets pressured markets and the FTX exchange collapse limited traders' appetites, causing lawmakers to turn their attention to the potential impact …
Bitcoin / Dec. 8, 2022