The Bitcoin (BTC) price rose sharply in the first half of October, rising from $ 10,500 to $ 11,700. However, momentum may change again as the strength of the cryptocurrency market declines.

A similar situation also occurred before the recent bullish eruption in bitcoin with sideways consolidation in BTC, which led to altcoins falling significantly south, especially in the Defi sector.

Rangebound, $ 11,000 contract
However, the large $ 11,000 support is now a mandatory level for renewed bullish momentum, which may make it difficult to remove current levels due to renewed closures due to invested Coronavirus.

Traders still remember the previous March pandemic fears, which led to the fall in the prices of many assets in the markets, including BTC.

Bitcoin’s daily chart shows a sharp break above $ 11,000, which is important for any bullish momentum.

However, maintaining the support of $ 11,000 is a prerequisite for optimism to maintain the weight, making it all the more likely to test the upper range of $ 12,000.

Gox bitcoins remain
Many investors are inclined to consider selling 150,000 BTC included in Mt. Gox fails every time a new deadline approaches.

However, the deadline for the release of these bitcoins has been extended again today to alleviate these concerns, or at least until December 15, 2020.

Meanwhile, the smaller time frame shows a similar picture with the $ 11000-11150 range, which is important to keep in support.

If this area is lost, there will probably be a sharp drop towards the $ 10,600 area. Even a CME gap of less than $ 10,000 can again be a topic of discussion.

However, since the $ 11,000-11200 level is an important support area to hold, you will want to stay here to ensure that the upper area zone shown on the upper chart is tested at $ 11,800-11,900 and maybe even $ 12,100.

The real question then is whether Bitcoin has enough strength to break that level of resistance. A break of $ 12,000 could trigger a massive bullish move that is likely to push the entire crypto market up.

The total market value is still fixed. The upper end of the range is defined by a resistance zone between $ 380-405 billion dollars. The bottom has been found at $ 265-285 billion dollars and is still untested.

At the start of a new bullish cycle, previous resistance levels are tested for support before further continuation occurs.

Zones worth $ 265-285 billion dollars are likely to be tested in this sense, as it will preserve the structure of the area boundaries. These large structures are also signs of lag in the new cycle.

In addition, if the total market value begins to move sideways, 100-week and 200-week moving averages (MA) will act as potential support. These indicators are important signals of support and further upward movement as they identify beef markets.

The most likely scenario will be more up-potential and a possible test of the $ 12,000 site after it manages to maintain the $ 11,000 – 11,200 site as support.

However, an immediate break of over $ 12,000 is unlikely unless the US Dollar Index (DXY) really starts to crash. Such a situation would correspond to a very bullish eruption in the bitcoin price, which opens up new multi-year highs.

Source: CoinTelegraph