Volatility is expected during the week due to the expiration of a large number of futures contracts. However, this has not happened as long as the macroeconomic environment remains uncertain.

The hiatus on a major cryptocurrency exchange on September 26 did not affect the price in any way, which is a positive sign for the markets and a positive signal for market maturity.

However, will this boring bitcoin (BTC) price movement continue? Let’s look at the charts.

Sometimes planning can be relatively straightforward, and this is one such case. Bitcoin price dropped below $ 11,100-11,300 earlier this month, creating new support at $ 10,000.

The lost level, the $ 11100-11300 range, is now confirmed resistance as well as a new high resistance range.

On the other hand, a possible drop to $ 9,600 will not come as a surprise as the level around $ 9,600 remains untested as the CFE futures gap persists.

The 4-hour chart shows a clear bullish rejection indicating a short-term trend reversal. Along with an overly bearish sentiment on social media, the market was poised for such a relaxing leap.

The same bullish bias was seen with other cryptocurrencies, so a return was felt in most of the market.

However, as mentioned in the previous analysis, the $ 10,800 barrier is a major hurdle to overcome. If it can be overcome as resistance, the $ 11,100 range will return to $ 11,300.

This zone at $ 11,100-11,300 is the last step before the continuation of the beef market. If the bitcoin price manages to break through this resistance zone, there will be a test of the last highs of $ 12,000-12,400 on the table.

The weekly chart of the total market value of the cryptocurrency shows a clear pattern. A new higher high was announced in previous months, indicating a possible start of a new bullish trend.

After higher growth, a new higher low should be created, from which a limited structure can be determined. Perhaps the best area for such a higher low is the former resistance zone marked in green on the chart, or $ 250-275 billion, which is good support / resistance volatility to be continued.

If this area persists, it also explains why starting a new cycle can be relatively tedious. At the start of a new market cycle, levels will turn into support / resistance, after which monthly ranges may appear. An example is Bitcoin price dynamics in 2016 (which was also half a year old).

During these periods, the Bitcoin price stabilized in the accumulation zone until 2015. After this accumulation range, the Bitcoin price broke out and rallied towards the next resistance zone.

This rally ended with a long 6 month sideways movement. There was a new breakthrough and another 6 months of side start began. Thus, today’s market sentiment can be compared to that period.

But the real hype will come when the total market value and price discovery of bitcoin surpasses $ 20,000, as potential packages could return to play.

It should be noted that these scenarios are based on a lower time frame (4 hours) and therefore should be considered as short term estimates.

As the price of bitcoin is stuck in a range and is currently facing resistance, it is likely to see a collapse towards the $ 10,400 range. $ 10,400 is a key area to be supported for any bullish continuation.

If Bitcoin price stays here, a potentially higher low will be found, which should provide more bullish momentum. As shown in the chart, the decisive breakout is the $ 10,800 range. If this area fails, the next obstacle will be $ 11,150-11,300.

A breakout in this area cannot be expected, but stronger bullish positions are required.

Source: CoinTelegraph

LEAVE A REPLY