Markets have been relatively weak over the past two months, with Bitcoin (BTC) prices hovering between $ 10,200 and $ 11,000. The limitation has decreased further in recent days, which leads some traders to anticipate a breach.
However, the bitcoin price showed no direction while the altcoins declined. Most of the markets have seen a broad correction, which is not a strong indication for the entire market.
Bitcoin’s daily chart shows the continuation of the range building that started after the price fell below the critical barrier of $ 11,200-11,400.
As long as the Bitcoin price remains below this resistance range, a strong uptrend is unlikely. However, the bitcoin price is nearing its peak with low volatility.
Once the volatility starts to decrease, the volume also decreases, which results in a very volatile movement.
Despite all the negative sentiment around the cryptocurrency market lately, Bitcoin’s volatility has been declining. Even after the KuCoin hack and the BitMEX and FCA trial banning derivatives trading, Bitcoin’s price did not react negatively.
In fact, bitcoin price has stabilized in recent moves, which is not a sign of weakness. Additionally, the documented increase in the number of new headlines indicates only potential bullish movement is expected.
However, will such a move take place in the markets or only at the bitcoin price?
The correction was delayed after a big jump in several cryptocurrencies across the board. The question is whether this correction has been completed, or whether a further correction is expected.
Bitcoin price fluctuates between levels, as does the overall market value in the entire sector. The chart shows a clear overview of the support, then fluctuates between $ 307 and $ 338 billion.
As with Bitcoin, the clear trend is unknown in the short term. Since Bitcoin reached $ 12,400, the price of Bitcoin has been on a downward trend. However, after the March crash, the trend has intensified.
In light of this, the possible confirmation of a higher low in Bitcoin around $ 9000 still provides the basis for the optimistic forecast, as it is the lower all-high within a massive uptrend.
The cryptocurrency markets clearly do not reflect the euphoria of 2017, which is completely normal. It takes a long time to create a bullish cycle before a climax occurs.
However, the total market capitalization was rejected at the $ 380 billion resistance level. A review of the $ 255-280 billion range is a very likely scenario that will also confirm the 100-week and 200-week moving averages.
Bitcoin price remains below resistance and loses momentum when volume decreases. Given the downtrend from $ 12,400, a break is likely to be expected. This would mean giving up the $ 11200-11400 range.
However, if Bitcoin price manages to overcome this resistance, new highs will be on the horizon as the major bullish reversal is broken.
In case of contradictions, the most likely support levels to watch in the regions are $ 9,500 – $ 9,800 and $ 8,800 – $ 9,100.
Should a further correction occur with respect to these areas, an end to the correction can be expected. In this case, 2021 could be very optimistic for the entire cryptocurrency market.