Why Another Drop Below $9.4K Would Not Bode Well for Bitcoin Price

While the equity markets are taking a huge hit today, the cryptocurrency market place and Bitcoin (BTC) price are remaining relatively stable over the weekend and into the start of this week. As the stock market place pulls back traders will begin to speculate on whether the crypto market will react in a bearish or bullish manner. Is this merely the calm before the storm?

One thing to note is crypto trading volume has drained abroad over the past few days. With book going down, perhaps this is a signal that a big move will take place in the marketplace soon.

Crypto market daily operation. Source: Coin360

Bitcoin toll holds $9.4K as a crucial support

The contempo retest of the $9,400 support level wasn't as bearish every bit many analysts feared equally the level held for support and confirmed the support/resistance flip. However, the price of Bitcoin remains stable since, which is causing the volume to bleed away.

BTC USDT ane-24-hour interval nautical chart. Source: TradingView

Bitcoin's daily chart is showing a perspective like to that of last week. The price is stuck within a range where $9,400 is the back up and $10,400 is the primary resistance level to quantum. Currently, the price action is non giving a clear management to the market place.

Nonetheless, the price moved from $6,900 to $ten,400 since the outset of this year and held the $9,400 level, which means that the price of Bitcoin is nevertheless trending upwards.

BTC USD weekly chart. Source: TradingView

The weekly chart of Bitcoin besides shows an encouraging outlook. The weekly closed above the crucial level of $9,500 and is currently stabilizing. Is this surly? No, not in detail. The cost of Bitcoin has moved most l% in 6 weeks thus a retracement and period of consolidation are natural and healthy for a market place before it continues.

The key areas to hold for Bitcoin are the $nine,500 and $8,800 areas on the weekly timeframe. If the price of Bitcoin can sustain back up to a higher place these levels (preferably $ix,500), a bullish continuation is still warranted.

The disquisitional resistance ahead is the $11,600 zone, which similarly, nonetheless has a CME gap around this area as well.

Shorter timeframes prove a downwardly trend

BTC USDT 4-hour chart. Source: TradingView

The 4-hour nautical chart also shows a clear downward structure in which the price is searching for support levels before continuation is sustained. Similar structures were plant in the previous run-up in January 2022.

Through this, it'south like shooting fish in a barrel to assume that Bitcoin price volition maintain this range for a petty longer.

Total marketplace capitalization shows strength

Total market place capitalization cryptocurrency chart. Source: TradingView

The total market capitalization is showing a good for you pullback from the $300 billion resistance into the green expanse between $250 and $270 billion. The chart does not bear witness a bearish outlook for now simply a drib below $250 billion would alter this point of view. This would hateful that an of import support was lost, and farther downward continuation would exist warranted.

However, as long as the green zone remains supported, farther upwards continuation is probable to occur, and and so the market will seek a higher loftier. A new college loftier would warrant further confirmation of an up-trending market place.

Information technology would exist critical for such a motility to intermission through the $325-350 billion resistance, which will be tested if the $250-$270 billion support gets confirmed.

Altcoin market place capitalization shows back up at $91 billion

Total altcoin cryptocurrency marketplace capitalization chart. Source: TradingView

A similar outlook tin can be viewed on the altcoin market place capitalization nautical chart. Support is found at the $91 billion areas, through which consolidation started. Even a drop-down towards $82 billion wouldn't be a bad outlook, equally long every bit the total altcoin market capitalization doesn't drop below that level.

Equally long as either of the two remain back up, continuation upward is likely to occur. Such a move would grant a test of $112 billion levels and ss this level is tested again the resistance should start to weaken. The more times a level is tested, the weaker it usually becomes.

If the $112 billion level breaks, continuation towards $140-150 billion is on the tables for the altcoin market capitalization.

Bitcoin's bullish scenario

BTC USDT i-day bullish scenario. Source: TradingView

The bullish scenario is the same equally the previous assay and follows the described scenario. As long equally the price of Bitcoin maintains higher up the $nine,400 support area, the bullish momentum and trend are continuing.

Holding the $nine,400 support expanse can even grant continuation towards the next resistance at $11,000 and $11,600-11,900. Yet, such a move could take some time before it starts to happen, every bit the price is currently range-jump between 2 levels.

As long every bit price remains sideways between $ix,400 and $x,400, the book and volatility will remain muted.

BTC USD weekly bullish scenario. Source: TradingView

The weekly nautical chart also brings the focus back to the $8,500 and $9,500 levels besides. A drop towards $8,700 could even warrant continuation upwards. However, the longer the price sticks between $9,400 and $10,400, a dropdown beneath $9,400 would usually atomic number 82 towards downward continuation.

This makes me believe that property the $nine,400 level is crucial in gild to expect further upward momentum.

Bitcoin's bearish scenario

BTC USD one-mean solar day surly scenario. Source: TradingView

The surly scenario is pretty straight-forrard. If the price of Bitcoin tin can't agree the $9,400 level for support, a continuation downwards is likely.

However, the price of Bitcoin could sustain within this range for a while. If the price can't brand a new higher loftier (like rejection at $9,900), a dropdown below $nine,400 is a serious possibility.

Key signals to picket for would exist a weak bounce from the $8,750 level. If the price of Bitcoin bounces at $8,750 and can't break dorsum to a higher place $9,400, a bearish rejection and confirmation are given. This rejection volition grant continuation towards $eight,000 and possibly lower.

The views and opinions expressed hither are solely those of the author and do not necessarily reverberate the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own inquiry when making a conclusion.

Source: https://cointelegraph.com/news/why-another-drop-below-94k-would-not-bode-well-for-bitcoin-price

Posted by: biaswitts1999.blogspot.com

Share this post