Bitcoin (BTC), the highest-rated cryptocurrency in terms of market value, saw a big jump to $ 10,500 before half happened on May 11. However, the price of Bitcoin was in trouble for half and now shows several signs of weakness.
Alternative currencies, on the other hand, began to show signs of life: the BTC market's dominance index fell from 67% to 65% after half. Now is the momentum moving towards Bitcoin alternative currencies, since the most awaited event is behind us?
The Bitcoin price moves in a wide range with low volatility
The Bitcoin price is in a wide range, as shown in the following chart. The red zone resistance zone ranges from $ 9,800 to $ 10,100. Meanwhile, the price finds support in the range of $ 8250-8500.
In addition, the BTC is moving above the 100-day and 200-day moving average (MA), which is a bullish signal for the markets.
When the noise fades in half and the market returns to its daily rhythm, the price of bitcoins also stabilizes. It's unusual?
No it's OK. Half and a half was such a big event for Bitcoin that the hype in social networks could lead to unstable inflation and provoke this event.
The previous half shows a similar structure. The price of bitcoin changed significantly in anticipation of the incident, when a half-crushing collapse happened and a new assortment was created. For a month, the price of bitcoin remained within reach.
After that, a single fall happened, and the market continued its upward momentum, supporting 200-MA as top support in December 2017.
As the 4-hour chart shows, Bitcoin lost its bullish wedge structure and collapsed. In other words, another failure to overcome the psychological barrier is $ 10,000.
In addition to falling, the price lost support at $ 9,300. Recent steps have also confirmed this level of resistance. However, as the chart shows, the support is $ 8,900.
What? Is the strong momentum over? Or is the market normalized only when alternative currencies receive more attention?
The total market value still contains 100-day and 200-day value assessments as support, which is crucial for a more bullish momentum.
However, the market value itself has been consolidated after 120 percent growth over eight weeks. What critical level should be maintained? This is a gray box for $ 220-225 billion.
If this level continues to be maintained, the overall market value will be in a key position to rise by around $ 300+ billion and possibly even $ 360 billion. However, the loss of this key can lead to a rapid decline.
The significance of this level is that both 100 and 200 days serve as correlative support with a strong horizontal support level, which served as support during 2018.
Thus, the $ 220-225 billion level will not only remain untouched, as support will be a strong signal to boost the bullish momentum, but it will also cause the entire cryptocurrency market to shake on March 12.
Finally, a sound indicator indicates an increase in volume. This is another strong sign, as this may indicate greater accumulation.
The altcoin market overview shows strong $ 70 billion support / resistance fluctuations, a level that also equals 100-day and 200-day moving averages as support. This is important because the market value has not lost this MA during the previous cryptocurrency cycle.
Nevertheless, since Bitcoin saw a significant increase in the $ 6,000 level in 2018, its total market value remained the same with $ 220-225 billion. But now the total market value holds the support level of $ 220-225 billion, while the price of bitcoins is now 50% higher.
Alternative currencies themselves are also very late: the support level for 2018 is $ 113 billion, compared with the level of $ 6,000 bitcoins.
The graph above shows that alternative currencies were generally underdeveloped. This is bad? No, Bitcoin is a pioneer and is also available.