Bitcoin Price Ping Pong Within Tighter Range Hinting at $8.5K Next

Bitcoin Worth Ping Pong Inside Tighter Vary Hinting at $8.5K Subsequent

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 befell on Might 11. Nonetheless, the value of Bitcoin has been having issues for the reason that halving and is at present exhibiting extra indicators of weak spot.

Then again, 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 probably the most anticipated occasion is behind us? 

Crypto market each 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 following chart reveals. The resistance space within the pink zone between $9,800 and $10,100. On the similar time, the value is discovering assist within the $8,250-8,500 space.

Moreover, BTC is transferring above the 100-day and 200-day transferring 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 each day rhythm, the value of Bitcoin can also be stabilizing. Is that uncommon? 

No, that’s regular. The halving was such a giant 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 reveals 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 assist till the height in December 2017.

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

BTC USD 4-hour chart. Supply: TradingView

Because the 4-hour chart is exhibiting, the value of Bitcoin misplaced the rising wedge construction and broke down. In different phrases, one other failure breaking by the $10,000 psychological barrier.

Alongside the drop, the value misplaced the assist at $9,300. Latest strikes have additionally confirmed this degree as resistance as properly. Nonetheless, assist was discovered at $8,900 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?

Whole market cap holds above 200-day MA

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

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

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

If that degree stays assist, the whole market cap might be in prime place for a surge towards $300+ billion, probably even $360 billion. Nonetheless, dropping that key degree can see a quick drop.

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

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

Thus, not solely will $220-225 billion degree holding as assist be a powerful sign for additional upwards momentum, however it could additionally make the March 12 crash one massive shakeout for your entire cryptocurrency market. 

Lastly, the amount indicator is exhibiting a rise in quantity. That is one other sturdy sign as this is able to recommend extra accumulation. 

Altcoin market capitalization nonetheless lagging behind

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

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

Nonetheless, as Bitcoin had important assist in 2018 on the $6,000 degree, the whole market capitalization had carried out the identical with $220-225 billion. However now, the whole market cap is once more holding the $220-225 billion degree as assist whereas the value of Bitcoin is now 50% increased.

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

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

The chart above reveals that altcoins have been lagging on the whole. Is {that a} unhealthy factor? No, Bitcoin is a primary mover and in addition 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. Because of this demand and curiosity are rising doubtlessly setting the stage for altcoins to lastly catch up.

The bullish situation for Bitcoin 

BTC USD bullish situation 4-hour chart. Supply: TradingView

The gray zone (with a possible wick in direction of $8,950) wants to carry. After that, a breakout of $9,300 is required to finally 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 following step. As this degree has been examined many instances already, the resistance degree needs to be weaker as a rule.

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

The bearish situation for Bitcoin 

BTC USD bearish situation 4-hour chart. Supply: TradingView

Nonetheless, as soon as the value of Bitcoin isn’t in a position to break by the $9,300 barrier, retests of the lows needs to be anticipated. Ranges to check could be $8,800 (already examined as soon as already), however, extra importantly, $8,200-8,500 assist of the present vary. 

Nonetheless, this is able to nonetheless not be catastrophic for Bitcoin on the whole. 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 powerful upward pattern. Consolidation is, in reality, wholesome for the market if new highs are to be established. 

The views and opinions expressed listed here are solely these of the creator and don’t essentially mirror the views of Cointelegraph. Each funding and buying and selling transfer includes threat. It’s best to conduct your personal analysis when making a call.