Bitcoin shows weakness for a week. However, a key support level is maintained, and this has led to continued growth of many altcoins such as Tezos (XTZ ) and Algorand (ALGO ), which are growing and on July 11 gained more than 9% and 17%, respectively.
Similar price jumps in altcoins usually occur when bitcoin stagnates, and this is what we saw in the previous two months. The question is how long will it last and whether cryptocurrency with the most a high market capitalization rating ready to retest a resistance level of $ 10,000?
Daily market review. Source: Coin360 Daily market review. Source: Coin360
Bitcoin holds above $ 9,000, which is a key support level
BTC / USD daily chart. Source: TradingView BTC / USD daily chart. Source: TradingView
The line is still not broken, but still we see an ascending triangle. However, the price of bitcoin shows weakness for a week.
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However, what signals do the markets show?
The first is a steady uptrend. This trend remains active as the market shows higher lows. It is imperative that Bitcoin maintains a support level of $ 8500-8800 on higher timeframes. If this level is lost, a chain reaction may occur from triggering stop / loss.
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Nevertheless, on a shorter time interval, the same can be said about the level of 9,000–9,100 dollars, located next to the trend line.
Secondly, the market is moving above the 100-day and 200-day moving average, and this is a bullish signal. These MAs can act as support that will push the price up.
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Finally, after defining an updated higher low, the RSI oscillator made a hidden bullish divergence, which involves re-testing the resistance zone at $ 10,000.
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What are the key areas for shorter periods?
BTC / USD 4 hour chart. Source: TradingView BTC / USD 4 hour chart. Source: TradingView
The 4-hour timeframe provides a clear explanation of stagnation. A level of $ 9,400 acts as resistance, while a key level of $ 9,000–9,100 remains support.
This range may persist for several days, as the price is stuck between these levels.
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However, a conflict in the markets occurs when the price has reached lower highs since the peak of June 1. It is very important that the bulls cope with the breakthrough of the resistance level of $ 9,400, through which, probably, a retest of the resistance level of $ 9,600 will occur.
A break of $ 9,600 means that it is possible to continue the impulse to a resistance level of $ 10,000, and if this level is tested again, a break will become more and more likely.
If the bears get control over the BTC price, the support level of $ 9,000–9,100 must be broken first, all earlier constructions of higher lows will be erased.
Total market capitalization holds an uptrend
Total market capitalization. Daily chart. Source: TradingView Total market capitalization. Daily chart. Source: TradingView
The chart of the total market capitalization of cryptocurrencies shows a steady uptrend. It is noteworthy that the chart shows a new higher high, while Bitcoin is lagging behind and has not yet reached a new higher maximum.
This shows that recently, altcoins have been in the spotlight, as they gained more momentum and market capitalization. Along with this, the chart shows a hidden bullish divergence displayed on the chart next to the support of $ 240 billion.
Further narrowing of the range may cause a new impulse to growth.
Bullish script for bitcoin
BTC / USD daily chart. Bullish script. Source: TradingView BTC / USD daily chart. Bullish script. Source: TradingView
As discussed earlier, an area of $ 9,000 - $ 9,100 remains a key pillar. Fortunately for the bulls, the market has maintained support that can be used to build a bullish scenario.
The area of 9,000 to 9,100 dollars should not be defeated in order to maintain an uptrend. As long as this uptrend persists, momentum is increasing and a test of $ 9,600 may occur.
This resistance level of $ 9,600 has not been tested and is ready for market testing. If the price of Bitcoin rebounds from this resistance level, the next target area of support is $ 9,300.
If this model continues to develop, then, most likely, a retest of $ 10,000 will be conducted. Thus, a repeated test of the area of 10 000-10 500 dollars will lead to a possible breakthrough up.
Bear script for bitcoin
The bearish scenario is quite simple and has several important points.
BTC / USD daily chart. Bearish scenario. Source: TradingView BTC / USD daily chart. Bearish scenario. Source: TradingView
The key point is another rebound from the level of $ 9,400, which leads to confirmation of the double top and a potential change in the trend.
Such a rebound will create another lower maximum and lead to a further decline. If this happens, then most likely there will be a new test of the level of $ 9,000–9,100. However, remember that the more often an important level is checked, the greater the likelihood that a breakthrough will occur.
The main turning point that you should pay attention to is breaking through the level of 9000 - 9100 dollars. If this happens, the volume should appear with a chain reaction from triggering stop / loss. It is likely to fall to the area of 8500-8600 dollars, after which a bearish rebound from the level of 9000-9100 dollars will be accompanied by a further decrease.
If such a fall occurs, the 100-day and 200-day moving averages lose their strength, and the market is likely to start using the 100-week and 200-week moving averages MA as support.
The first major support level is between $ 7,500 and $ 7,700 if the market falls below today's support for the two-month consolidation range.
If this does not happen, the market is ready for further upward movement. As the chart shows, these movements can occur before the end of August. This will be beneficial for altcoins as they continue to be in the spotlight.
But remember that if bitcoin soon leaps down, then altcoins will suffer.
I recommend to read an article about how an American predicted the growth of bitcoin in 2015 and the bitcoin chart that I drew in 2018 began to come true.
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