Bitcoin (BTC) fell last week and fell from $ 19,500 to $ 16,000. Corrections do not flow smoothly, as downsizing is often surprising and painful. The recent correction is not much different since the decline has occurred in a few hours.

Since then, Bitcoin has strengthened above $ 16,000 dollars, which is a temporary low. The basic question is whether the correction is over. The decisive factor will be whether the BTC price can recover to critical levels that will support a more bullish momentum.

Bitcoin is in the middle of a relief rally over the weekend

BTC / USD 1-day chart. Source: TradingView
As the daily chart shows, a critical support area was created around the $ 16,000 range. The Bitcoin price lost the potential upside in lower time frames, where a liquidation chain occurred. This chain reaction caused the price to accelerate downwards.

The Bitcoin price often goes up stairs and down escalators. When this happens, the daily time frame signals the need to maintain critical support levels where the area around $ 16,000 is a large area to hold.

The chart shows temporary support and a rebound from this area as the bitcoin price is currently $ 1400 above the support level.

Bitcoin must break $ 18,000 to restore Bullish Momentum

BTC / USD hourly chart. Source: TradingView
The hourly chart shows a clear break from the support level of $ 18,600, causing a downward chain reaction.

However, some of the lower timeframe signals during this correction show critical resistance levels starting at $ 18,000. Bitcoin fell in the support zone of $ 17,200 and slightly higher, but failed to break through $ 18,000.

This failure to break through $ 18,000 creates a zone of resistance. This resistance range must be broken to maintain bullish momentum and then bullish reversal at lower time frames.

The next obstacle was found in the $ 18,600 area, which did not support support in the previous rally.

Total market value is ready for further decline

A graph of the total market value of cryptocurrencies in one day. Source: TradingView
The daily chart of total market value shows a clear crash as total market value fell significantly after reaching the 1,618 Fibonacci level.

The bullish side, however, is a new higher high and a break above the $ 400 billion resistance zone.

During this period, the $ 400 billion massive resistance area has not yet been confirmed by reconsideration. From this perspective, it is highly likely that we will see further correction to $ 400 billion to confirm the previous support area.

What is the likely scenario for Bitcoin?

BTC / USD 1-day chart. Source: TradingView
The most likely scenario would be a comfortable push towards the $ 18,000 to $ 18,500 range. In this case, the range from $ 18,000 to $ 18,500 instantly becomes a critical part of the scenario described.

If $ 18,000 falls to $ 18,500, it is most likely a sustained encounter to new full-time points. However, if this resistance zone is not destroyed, a new area will open.

This range hovers between $ 16,000 and $ 18,000, with $ 18,000 resistance confirming a new low. Lower altitudes indicate a downward trend, so the market can look forward to further south corrections.

As such, a correction to $ 14,000 is unlikely at the moment, as this is last June 2019 and could trigger a major reversal of support / resistance for the markets.

If the bitcoin price stabilizes above $ 14,000, the next rally will probably push the bitcoin price above $ 30,000.

Source: CoinTelegraph

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