Technical analysis of Bitcoin prices shows some key levels that traders should consider this week, as the BTC remains in a range below USD 11,000.
The past few months have seen incredible volatility in all areas, including Bitcoin (BTC). However, over the past few weeks, volatility has decreased dramatically to a state of boredom.
The general momentum and optimism left the crypto markets alone to be replaced by limited range lateral movements. In other words, very boring.
However, what is the crucial Bitcoin price level to watch out for next week? Let’s take a look at the technical aspects.
Bitcoin faces $10,800 as a short-term breakout factor for a continued upward movement
The 2-hour chart shows a clear downward trend structure. The price of Bitcoin has been reaching lower peaks of $12,400. This lower peak structure has continued until the recent rejection at $11,000.
On top of that, the upward divergence has been relatively well developed as the market recovered from its recent low of $10,200. This rebound could not pass the $11,000 area and formed a range-bound structure.
However, the deciding factor for any upward continuation is at $10,800. If Bitcoin breaks that order block, a possible continuation towards the massive resistance of $11,200-11,400 becomes increasingly likely.
The failure of a breakthrough at $10,800 and a possible reversal and testing of the $10,200 area is on the table.
The total capitalisation of the crypt market remains on the fence
The total capitalisation of the cryptomoney market shows a clear structure of range limits with significant levels.
Firstly, the resistance area is at $335-340 billion, which was previously found to be a support zone.
In a similar pattern to Crypto Superstar Bitcoin, if that resistance area breaks, it is likely to continue towards the highs. However, another rejection would increase the chances of a new corrective movement towards $260-275 billion.
This $260-275billion area is likely to be affected if the $300billion support zone is lost. Would that be a bad scenario for the markets? No, it is very healthy to have setbacks in a market cycle to mark resistance/ support change confirmations. In short these tests are very beneficial to any continuation of the uptrend.
Bitcoin’s dominance stops at 60%
When momentum begins to shift away from the markets, the strength of the altcoin movements also drops correspondingly. The focus returns to Bitcoin, as it is the main driver of the market.
Bitcoin’s dominance index fell below 64%, but is currently at the 60% level.
The dominance graph is difficult to analyse as a valuable price asset, because it is not, but useful data can still be determined from the graph.
From a purely technical point of view, it is likely that there will be a potential rally towards 64% for Bitcoin dominance, after which a rejection or a change in support/bearish resistance would shift the momentum back to the altcoins.
Ether historically weak in every fourth quarter
Meanwhile, seeing a weak fourth quarter for the altcoins is no longer a surprise. Looking at history, the last three months of the year have not been too kind to Ether (ETH).
As the chart shows, Ether’s price lows are normally in the last quarter of the year, specifically December. At the same time, the fourth quarter is usually one of the most volatile periods for crypt coins in general.
Furthermore, this chart shows another hidden message that September is generally bad for Ether and the crypt markets. In that case, a retreat of Ether to 0.025 sats would not be a surprise and a healthy re-test of the previous area of resistance and accumulation.
Many investors expect markets to continue to rise strongly as they do at the end of 2017. However, this momentum is difficult to achieve and will only return once the market enters a similar state of euphoria.
Until then, support/resistance changes and corrective moves after a 100% rise are likely to persist.