Bitcoin Price Bouncing Back or Dead Cat? 4 Key Levels to Watch for

The crypto markets are experiencing a pocket-size relief rally during the calendar week, as the cost of Bitcoin (BTC) bounced from $8,400 towards $9,150.

This bounce was heavily needed afterward a massive red candle the calendar week before. Still, is the upwards momentum back in the fields? Or is information technology just a dead cat bounce before more downside?

Crypto market daily performance. Source: Coin360

Bitcoin breaks back higher up $9,000, but can't interruption $9,150 resistance

During the week, Bitcoin has seen a quantum in the $9,000 level, which is currently providing support for the markets.

Yet, given that the price of Bitcoin lost the $nine,400-9,600 support area, means there'southward a substantial amount of resistance lying above us to break through.

BTC USDT 1-day nautical chart. Source: TradingView

The daily timeframe shows that the $eight,200-8,500 area managed to agree for support, after which price jumped to the current price of $9,100. The daily candle of yesterday airtight above $9,050, as that level is regained for support. A disquisitional level to hold right now, as it tin warrant continuation towards $ix,300-9,400 as the next major pivot.

For a continuation and bullish perspective, the price of Bitcoin needs to break back above $nine,300-ix,400 and preferably $9,600. If either of these levels becomes resistance and so the levels are tested equally a bearish retest and downwards tests are evident to occur.

If a surly retest occurs, the primary back up zones are establish at $eight,200 and possibly $7,500.

Weekly holds the 21-MA for support

BTC USDT 1-week chart. Source: TradingView

The weekly chart of Bitcoin is showing that the 21-week Moving Average (MA) is currently holding the price of Bitcoin. That's essential since the moving average served every bit support through the previous bull cycle of 2022-2017. Hence, it's a significant indicator for traders for bullish and bearish momentum confirmation.

However, as discussed in the previous section, the resistances are establish between $9,300-$9,600 and are essential to break to sustain further upwardly momentum.

The supports are plant at the 21-week MA and further around $8,200 as in that location's a monthly and weekly level lying in that location. Losing the $8,200 level regularly gives a continuation towards the $7,400-7,600 area.

Bitcoin stuck in a range on the smaller time frames

BTC USDT 2-hour chart. Source: TradingView

The two-hour nautical chart of Bitcoin is showing clear range-jump movements in the past few days. The cost of Bitcoin has found resistance at $9,150-9,180 and establish support betwixt $8,950-eight,980.

Another support level is institute at $eight,900-8,920. As long as that level remains support, a continuation up and examination of the $9,300-9,400 is on the tabular array.

Total market capitalization holds $230 billion level

Total market place capitalization cryptocurrency i-week chart. Source: TradingView

The full market capitalization chart of cryptocurrency is showing a stiff bounciness from the $230 billion level. However, the weekly candle before shows a sharp selloff, indicating that some more than things need to occur to maintain a bullish outlook.

Ane of them is reclaiming sometime back up levels. Therefore, the weekly candle should close in a higher place $252-254 billion. If the total market capitalization closes above information technology, it's likely to meet continuation towards the next levels effectually $270 and $280 billion.

Full market capitalization cryptocurrency one-day chart. Source: TradingView

The daily chart of the total market capitalization is showing an apparent breakthrough in the $252-254 billion levels. As long equally that level remains back up, the path towards $270-271 billion is open, which is pretty like to the $9,300-9,400 area of Bitcoin.

However, a retest of the $230 billion levels is non out of the woods. The bounce up doesn't testify much force at this point. Losing the $252-254 billion level opens upwards the possibility of another retest of $230 billion.

4 key levels to sentry for: bullish

BTC USDT 4-60 minutes bullish scenario. Source: TradingView

The bullish scenario is pretty straightforward for Bitcoin. The price of Bitcoin needs to agree $8,920 and preferably $9,000 as back up, through which the upper resistances should be tested.

The resistances are shown at $9,300-9,400 and $9,600 (the final one is a weekly level). To be fully bullish, I'd want to see an credible breakthrough of the $nine,600 level with a high corporeality of volume.

The moment that the $9,400 or $9,600 level turns support, continuation towards $ten,400 is the next stride to go for and probably new highs. However, if these levels tin't exist broken upwards, they'll be confirmed as a bearish retest, and then lower back up tests are needed.

The surly scenario for Bitcoin

BTC USDT four-hour bearish scenario. Source: TradingView

The bearish scenario is also straightforward. The first scenario is a massive rejection and bearish retest at the $9,300-ix,400 area (could be having a wick towards $9,600), after which the cost drops down.

In case of such rejection, it'south likely to expect retests of the $8,200-viii,400 to occur. Such a move would cause the markets to driblet down further. An example would be a drib of Ethereum (ETH) from $250 towards $195 for some more back up tests.

Another bearish scenario is whether Bitcoin can't break above $nine,150 and immediately loses the $viii,920 area. Losing that zone and nosotros'll run across momentum and $eight,200 retest down equally the primary possible consequence.

Does that look bad for the macro perspective? Not at all. The market has seen a large rally in the first weeks of this year, a retracement and correction are only healthy for a sustainable continuation of the market place.

The views and opinions expressed here are solely those of the writer and exercise not necessarily reflect the views of Cointelegraph. Every investment and trading movement involves risk. You should conduct your ain enquiry when making a determination.

Source: https://cointelegraph.com/news/bitcoin-price-bouncing-back-or-dead-cat-4-key-levels-to-watch-for

Posted by: lizotteesethe.blogspot.com

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