Bitcoin (BTC) price faces the final resistance area until the bull market ignites. However, will you break this resistance area in one attempt? The charts show that the $ 11600 to $ 12000 area is a critical level for a break if the bitcoin price is to continue rising.

With Bitcoin price unable to breach this resistance zone, it fell slightly on Friday from $ 11,900 to $ 11,350. Subsequently, BTC managed to trim most of the losses since then.

Bitcoin faces resistance at $ 11,800-12,000
BTC / USD is still struggling in its $ 11,800-12,000 resistance zone. Unfortunately, the breakout has not yet occurred, while silver and gold have shown more strength recently.

The graph shows that there is an obvious resistance zone between $ 11,800 and $ 12,000. This is an important level as it is the last level that was not tested until Bitcoin’s exit.

If there is a breakout in this resistance area, the bitcoin price could easily range between $ 15,000 and $ 16,000. Such a race will only increase fear of losing opportunity in the markets.

Such a run is unlikely at the moment, especially given the recent breakout at $ 10,000.

In other words, as Bitcoin has risen vertically towards $ 12,000 since $ 9,500, a break above this resistance becomes less likely since there is no build-up. Usually, when an asset wants to breach such an important resistance, it tests the level several times before breaking.

For example, the period of consolidation (similar to the months after Bitcoin halved) led to the strength and momentum that ultimately pushed BTC / USD above $ 10,000. However, a break above the $ 11800-12000 resistance zone is out of the question.

Smaller periods of time maintained the $ 11,400 level and the face of resistance
When Bitcoin dropped from $ 11,900 to $ 11,400 last Friday, the previous resistance area of ​​$ 11,400 was confirmed as the support level. One of these tests is known as a support / resistance reversal and is very common in all markets.

The table above shows clear levels of resistance and support. The area of ​​resistance ranges between $ 11.775 and $ 11,850 and between $ 11,925 and $ 12,100. The latter is the last hurdle before a continuation of around $ 15,000 occurs.

The green zone is a major support area of ​​between $ 11,300 and $ 11,400 which, as mentioned, was tested just before the weekend.

In any case, volatility will start once the bitcoin price breaks through one of the two regions. If Bitcoin price breaks out of resistance areas, it is likely to continue towards $ 15,000. However, if the opposite happens and Bitcoin loses $ 11,300, the drop to $ 10,700 is the next level to test.

The total market cap of cryptocurrencies faces significant resistance that runs counter to that of Bitcoin. $ 350 billion is the last major hurdle before a 30% transition to $ 500 billion occurs.

The chart also shows that the total market cap is still above the 100 and 200 day moving averages (MAs), which is an important signal for bull markets. When the market value is higher than these moving averages, the market is in bullish territory and dips should be viewed as buying opportunities.

In essence, the former $ 290 billion resistance area is the key level. As long as the total cryptocurrency market cap remains above $ 290 billion, there is likely to be additional upward momentum.

A break of $ 12,000 supports the bullish scenario. When it finally breaks through the resistance zone as resistance, $ 15,000 becomes a potential target for bulls.

However, a clear breakout through the $ 12,000 area can only be confirmed by a support / resistance reversal. This may indicate buyers’ intervention as former resistance turns into new support.

The bearish scenario means that $ 12000 has not been broken. If resistance continues to be resistance, then the re-zone structure is likely to emerge in the coming weeks.

Another argument can be found in the currency markets. The recent breach of Bitcoin occurred while the EUR / USD rose from 1.14 to 1.19. This breakout caused the US dollar to depreciate against other currencies, which mainly led to massive breakouts in Bitcoin, gold and silver prices.

Source: CoinTelegraph

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