Bitcoin price technical analysis shows some key levels that traders
should watch this week as BTC remains range-bound below $11,000.
The previous months have given incredible volatility across the boards, including Bitcoin (BTC). However, in recent weeks, the volatility drastically decreased to a state of boredom.
The
overall momentum and bullishness have left the crypto markets only to
be replaced by range-bound sideways movements. In other words, very boring.
However, what is the crucial Bitcoin price level to watch for in the coming week? Let’s take a look at the technicals.
Bitcoin facing $10,800 as short term breaker for upward continuation
BTC/USDT 2-hour chart. Source: TradingView
The
2-hour chart is showing a clear downward trending structure. The price
of Bitcoin has been making lower highs since $12,400. This structure of
lower highs has continued until the recent rejection at $11,000.
Next
to that, the bullish divergence has played out relatively well as the
market bounced up from its recent low at $10,200. This bounce couldn’t
surpass the $11,000 area and formed a range-bound structure.
However,
the crucial breaker for any upward continuation is found at $10,800. If
Bitcoin breaks through that order block, potential continuation toward
the massive resistance at $11,200-11,400 becomes increasingly likely.
Failure of a breakthrough at $10,800 and a potential reversal and tests of the $10,200 area are on the table.
The total crypto market cap remains on the fence
Total market capitalization cryptocurrency 1-day chart. Source: TradingView
The total market capitalization of all cryptocurrencies is showing a clear range-bound structure with significant levels.
First of all, the resistance area is found at $335-340 billion, which was previously found to be a support zone.
In
a similar pattern to Bitcoin, if that resistance area breaks,
continuation is likely toward the highs. However, another rejection
would increase the chances of a further corrective move toward $260-275
billion.
This $260-275 billion area will most likely be hit if
the $300 billion support zone is lost. Would that be a bad case for the
markets? No, it’s very healthy to have pullbacks in a market cycle to
mark resistance/support flip confirmations. Put simply, these tests are
very beneficial for any further continuation of the upward trend.
Bitcoin dominance pauses at 60%
BTC Dominance 1-week chart. Source: TradingView
When
the momentum starts to drain away from the markets, the altcoin
movements’ strength also equivalently drops down. The focus comes back
on to Bitcoin as it’s the primary mover of the market.
The Bitcoin dominance index fell beneath 64% but is currently resting on the 60% level.
The
dominance chart is hard to analyze as a valuable price asset — because
it’s not — but useful data can still be determined from the chart.
From
a purely technical point of view, a potential rally towards 64% is
likely for Bitcoin dominance, after which a rejection or bearish
support/resistance flip would shift the momentum back to altcoins.
Ether historically weak in every Q4
In
the meantime, a weak Q4 for altcoins may not come as a surprise. If
history is analyzed, the last three months of the year haven’t been too
kind for Ether (ETH).
ETH/BTC 1-week chart. Source: TradingView
As
the chart shows, price bottoms for Ether are typically found in the
last quarter of the year, specifically in December. At the same time, Q4
is typically one of the most volatile periods for cryptocurrencies in
general.
What’s more, this chart shows another hidden message
that September is, in general, bad for Ether and the crypto markets. In
that case, a retracement of Ether towards 0.025 sats wouldn’t be a
surprise and a healthy retest of the previous resistance and
accumulation area.
Many of the investors are expecting the
markets to continue moving up heavily just like in late 2017. However,
this momentum is tough to achieve and will only come back once the
market gets in a similar state of euphoria.
Until then, support/resistance flips and corrective movements after a 100% surge are very likely to persist.
source link : https://cointelegraph.com/news/should-bitcoin-traders-be-worried-about-lower-highs-ever-since-12k
