In the past week, a major drop came at the Bitcoin price wherein it fell to $16,000 from $19,500. No smooth corrections might occur since dropdowns are not certain and often occur suddenly. Not much difference is present in the past correction as dropdown came within a few hours. After that, a consolidation of about more than $16,000 came in the Bitcoin price that left a temporary mark. Now, a major query exists regarding the correction, whether it still prevails or ends!
An important factor that might help decide whether it is possible to reclaim the Bitcoin price’s vital levels. And such levels refer to the areas that will lead to further supporting a momentum going upward.
With the daily chart, a wide support layer prevailed around the area of $16,000. No doubt, the bitcoin price lost when it failed the trend going upward for low intervals. As a result, multiple liquidation chains of reaction came into existence. Within no time, the chain reaction resulted in lowering the price in a downward direction.
Frequently, the price for BTC took an upward staircase with a downside elevator. With this thing’s occurrence, a change like holding up the vital levels of support in the daily interval period. With this, the layer build-up all over $16,000 turns out to be a massive one to keep on hold.
A break over $18,000 is vital for Bitcoin to cover up momentum:
In the hourly chart, one can get a clear view of the situation. It shows a breakdown that occurs from the level of $18,000 support zone. As a result, it made the chain reaction take a movement in the downward flow.
Though, vital levels of resistance came in the lower signal time-frame within the correction phase, ranging at $18,000. With a subsequent drop of Bitcoin price at the support area of $17,200, it results in an upward bouncing movement. But it failed in breaking the area for $18,000.
With the $18,000 breaking failure, it leads a way to establish an area of resistance. It is important that this resistance zone breaks the phase of bullish momentum sustainability and comes back on a time frame with a lower interval.
Another hurdle stopping the way is searching out for the $18,600 zone that missed support in the past run-up phase.
The total capitalization of the market is comfortable to face further downsides:
The total capitalization of markets daily chart points towards a breakdown that might be apparent since a significant drop came in the total market capitalization after it came to the level of 1.618 Fibonacci.
Though, one bullish thing is about the upcoming of newer higher highs. Not only this, but it also includes a breakout phase that ranges above $400 billion zones of resistance.
There wasn’t any confirmation using a retest upon the $400 billion massive resistance zones within this ongoing run-up phase. Considering this, it might be worth looking upon a correction further on $400 billion to confirm the past resistance zone for enhanced support.
What might be bitcoin’s current scenario?
In the current time, a likely bitcoin scenario might be better to go with a relief rally revolving around $18,000 -$18,500. In the described scenario, a vital phase for the breaker is about $18,000 to $18,500.
With any break in the area of $18,000 – $18,500, a rally further sustainable for all the highs is a likely result. If there’s a break in the zone, a new range might occur.
In this range, it might occur from $16,000 – $18,000. For the new lower high confirmation, a resistance range will turn out to be $18,000. With the lower highs, it represents the trend going downward.
In this context, it doesn’t seem likely to correct $14,000. It was a high earlier in 2019 and might even warrant a wider flip of resistance or support in the crypto markets.
If the price of Bitcoin reaches more than $14,000, it might result in calling the rally with a steady rise in the Bitcoin price ranging above $30,000.