Bitcoin Price Faces the Last Big Hurdle Before $10,000
Bitcoin price (BTC) kicked off 2022 with an incredible 37% proceeds in the month of January. Aside from that, support was found at $8,200 earlier this week. This support examination resulted in a continuation of the upward momentum, leading the toll towards $9,500.
Is the price of Bitcoin ready to face $ten,000?
Crypto market place daily performance. Source: Coin360
Bitcoin shows potent monthly candle for Jan
The monthly candle airtight yesterday, which tin can only give a bullish decision. A potential new up trend has started, given that buyers stepped in during Jan at every support/resistance test.
BTC USDT 1-month chart. Source: TradingView
Nevertheless, is it all sunshine and rainbows at the moment? Not completely. The price of Bitcoin has at present moved towards the adjacent resistance, and this one can exist defined every bit a major hurdle, as shown by the following chart.
BTC USD 1-24-hour interval nautical chart. Source: TradingView
The resistance at $9,500 is massive, given that the price bounced multiple times on this level throughout the summertime of 2022. If a breakout upward occurs, continuation should exist likely towards $10,900, and that would break the psychological bulwark at $10,000.
Total market place capitalization breaks a major resistance
Total market capitalization 1-solar day chart. Source: TradingView
The total market place capitalization of cryptocurrencies is showing a articulate test of the $215 billion levels for support, which was needed. After this, the market capitalization rallied towards another massive resistance. This level is found at $240-245 billion and is comparable to the level of $9,500 for Bitcoin.
However, there'south a departure hither. The full market capitalization already broke in a higher place this level and is currently turning it in to support. Does this imply that altcoins are outperforming Bitcoin?
It should exist noted that there is also a bearish feature that can be observed on the chart. If the total market capitalization breaks below the $240 billion level, the potential bearish divergence becomes a confirmed bearish divergence. Another test of the $215 billion levels (the blue trendline) would be probable in this case.
Altcoin market capitalization breaks the $80 billion barrier
Altcoin market capitalization crypto ane-day nautical chart. Source: TradingView
The altcoin market capitalization is showing a similar chart as the full market place capitalization. The disquisitional level of $80 billion is broken to the upside, after which consolidation started.
The same notions are also stated for the altcoin market capitalization chart. If in that location's a break below the $80 billion levels once more, the bearish departure becomes confirmed, and retests of the $72 and $65 billion levels are probable to occur.
Withal, on the bright side, if $80 billion is held as support, continuation towards $100, which is also the adjacent resistance.
Bitcoin dominance however hovers below 68%
The authorization chart for Bitcoin didn't change much in the recent weeks every bit major altcoins are still facing pregnant resistances. Currently, the well-nigh prominent examples would exist (XRP) and Ether (ETH). XRP needs to break a 2-twelvemonth old downtrend, while Ethereum needs to break to a higher place 0.02 satoshis to continue higher.
If either of these ii movements occurs, a continuation to the downside is likely for Bitcoin's say-so. However, if Bitcoin itself starts to run above $ix,500, a selloff on altcoins wouldn't be a surprise. Such a selloff frequently occurs when Bitcoin's volatility increases.
ETH USDT 1-day nautical chart. Source: TradingView
The primary indicator for altcoins is Ether, which likewise bankrupt a vii-calendar month downtrend, as the nautical chart shows.
Recently, the price establish support at $157 (green zone) and continued to rally. A similar support/resistance flip occurred at the $173 level, which makes me believe that a continuation towards $195 and $230 is likely.
Equally many charts are showing potential surly divergences, a breakdown of Ether below $173 would generally mean a retest of $157-162 before further upwards momentum. The key indicator for trends is nonetheless found in college highs and higher lows. If Ether price breaks below $157, then the crypto market is in problem.
The bullish scenario for Bitcoin
BTC USD ane-day bullish scenario. Source: TradingView
The bullish scenario is the chief scenario at this point, given that the trend is moving upwardly after the breakout of the 7-month downtrend.
Key levels to watch are the $9,000 level and $ix,500 level. The reasoning backside $nine,000 is that it could exist tested for back up earlier the price continues to rally above $ix,500. A retest of $8,750 and $9,000 is still good for you for the market place construction, every bit the price of Bitcoin will yet brand higher lows.
An credible breakthrough of the $nine,500 level would point a breakout above a significant resistance, equally discussed in the article.
If the price breaks through this level, targets will be plant at $10,500 and $10,900. I don't run across resistance at $10,000 other than the fact that circular numbers typically function every bit psychological barriers.
The bearish scenario for Bitcoin
BTC USD ane-day bearish scenario. Source: TradingView
A bearish scenario would get valid if Bitcoin lost the $8,200 level. Losing this would point that the momentum of higher lows is gone and further downward force per unit area would be expected.
Thus, what signals should traders look for in order to determine that Bitcoin has get bearish? If the price makes a retest at $8,750, the bounciness should be severe plenty to break back above $9,000. Still, if resistance is immediately found and the toll makes a lower high then continuation to the downside is warranted.
But, price first needs to arrive at these levels to decide how traders and investors react. The momentum is upward for now, and when the toll of Bitcoin breaks higher up $10,000, FOMO (fear of missing out) could start to kick in. Specially given the halving is now only 100 days abroad.
The views and opinions expressed hither are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves chance. You should conduct your own inquiry when making a conclusion.
Source: https://cointelegraph.com/news/bitcoin-price-faces-the-last-big-hurdle-before-10-000
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