Bitcoin (BTC) price showed little momentum last week as BTC rose from $ 10,000 to $ 11,200. However, the general consensus in the cryptocurrency market has shown weak two-digit sales for many small cryptocurrencies.
This sell-off appears to have taken hold when Bitcoin price confirmed $ 11,200 resistance over the weekend.
In the previous analysis, the $ 11,000 – $ 11,200 level was identified as a significant resistance area for a breakout. The importance of this level is extremely high, as the previous period of unification used the area as a central support area.
If the market is to continue its upward pace, this area should be used as support, making a rethink of $ 12,000 possible.
But after this rejection, the bitcoin price reached a new low, which means that the additional velocity is likely to be higher in the short term.
All markets were withdrawn except for DXY
As commodities, cryptocurrencies, and stock markets crashed, the US dollar index (DXY) showed its strength.
Around the world, there are growing concerns about the drawbacks of the new Coronavirus due to high infection rates. In times of uncertainty, investors are looking for “safe” places, making the US dollar the preferred place to store monetary value.
During the crises of 2000 and 2008 until the recent market crash in March, the US dollar was considered the strongest asset.
The chart above shows a clear swing in support / resistance at 92.75, after which the upward rejection was confirmed. It looks likely that the trajectory will continue to 95 pips on the horizon, unless there is a divergence in the 93.50-94 range. The decline may continue if DXY retreats from the 92.75 range.
If DXY continues to show its power, commodities and cryptocurrencies will continue to misbehave. The opposite is expected if DXY shows weakness.
The total market capitalization of the cryptocurrency remains standardized and adjusted from the previous impulse. This means that the 100-week and 200-week moving averages (MAs) are the main area to bear in mind, as they indicate a continuation of the bullish and bearish cycle.
However, the $ 250 billion to $ 275 billion range of resistance and previous incorporation has not been tested to confirm the outbreak.
In this respect, a green zone between $ 250 billion and $ 275 billion is a highly potential area with support for higher timeframes.
The 2 hour chart shows a clear rejection of the $ 11100-11300 range as the negative expectations for the breach were met.
But what will happen after this strong market crash? The range of $ 10200 to $ 10325 is a support area in the lower timeframe, and indications are that there might be a sharp rally on the tables.
The main resistance area to test and break for a bullish continuation is the $ 10,700-10,750 range, which is also unlikely to be anticipated at this time.
If this area is not breached or the price moves beyond the $ 10,200 range, investor attention will return to the untested level in the $ 9,500 to $ 9,700 zone.
This level is still very important as it is close to an open CME gap.