Bitcoin price (BTC) faces its last resistance zone before the bull market catches fire. However, Will this resistance zone be broken in a single attempt? The graphs suggest that the area between The $ 11,600 and $ 12,000 is a crucial level to overcome if the price of BTC is to continue to climb.
As the price of Bitcoin was unable to break through such a resistance zone, on Friday there was a small drop from USD 11,900 to USD 11,350, after which BTC has managed to recoup most of the losses since then.
Daily performance of the cryptocurrency market. Source: Coin360
Bitcoin faces resistance between $ 11,800 and $ 12,000
The BTC / USD pair is still struggling in the resistance zone between $ 11,800 and $ 12,000. Unfortunately, there is still no break, while silver and gold recently they have shown more strength.
One-day chart for the BTC / USD pair. Source: TradingView
The graph shows that there is a clear resistance zone between $ 11,800 and $ 12,000. This is a significant level, as it is the final untested level before Bitcoin enters the open air.
If there is a breakout in this resistance zone, the price of Bitcoin can easily reach the levels between $ 15,000 and $ 16,000. Such a move would only increase the FOMO, or fear of missing out, in the markets.
However, such a move is unlikely at present, especially given the recent breakout of $ 10,000.
In other words, as Bitcoin price turned vertical from $ 9,500 to $ 12,000, a breakout above this resistance becomes somewhat less likely as there is no accumulation. If an asset wants to break through such significant resistance, generally test the level several times before breaking it.
For example, the consolidation period (similar to the months after the recent Bitcoin halving) resulted in the strength and momentum that eventually pushed the BTC / USD pair above $ 10,000. However, a break above the resistance zone between $ 11,800 and 12,000 is not entirely out of the question.
Smaller time frames held the $ 11,400 level and faced resistance
Like the price of Bitcoin fell from $ 11,900 to $ 11,400 last Friday, the previous resistance zone at $ 11,400 was confirmed as a support level. This test is called change from support to resistance and it is something very common in all markets.
2-hour chart for the BTC / USD pair. Source:TradingView
The chart above shows clear levels of resistance and support. Hardiness zones can be found between USD 11,775 and USD 11,850, and the next between USD 11,925 and USD 12,100. The latter is the last hurdle before the continuation to $ 15,000 can occur.
The green zone is a crucial support zone, between USD 11,300 and USD 11,400, which, as mentioned, it was tested just before this weekend.
Either way, volatility will kick in once the price of Bitcoin breaks through either zone. If the price of Bitcoin through hardiness zones, the continuation is likely to approach the USD 15,000. However, if the opposite happens and the price of Bitcoin falls at $ 11,300, a drop towards $ 10,700 will be the next level to test.
Total cryptocurrency market capitalization faces resistance at $ 350 billion
1 hour chart of total cryptocurrency market capitalization. Source: TradingView
The total capitalization of the cryptocurrency market faces significant resistance, that converges with the resistance of Bitcoin, with $ 350 billion being the last major hurdle before a 30% move towards $ 500 billion can occur.
The graph also shows that the total market capitalization it continues to trade above the 100-day and 200-day moving averages (MA), a crucial signal for bull markets. If the market capitalization moves above these MAs, the market will be in bullish territory and declines should be viewed as buying opportunities.
Essentially, the previous resistance zone at $ 290 billion is the crucial level to hold. As long as the total cryptocurrency market capitalization remains above $ 290 billion, further momentum is likely.
The bullish scenario for Bitcoin
1-day chart for the bullish scenario of the BTC / USD pair. Source: TradingView
Exceeding $ 12,000 would consolidate the bullish scenario. If the resistance zone finally breaks, $ 15,000 will become a very likely target for the bulls.
However, A clear break through the $ 12,000 area can only be confirmed with a change from support to resistance. This would suggest that buyers are stepping in as they the old resistance becomes the new support.
The bearish scenario for Bitcoin
1-day chart for the bearish scenario of the BTC / USD pair. Source: TradingView
The bearish scenario means that $ 12,000 was not exceeded. If the resistance continues to act as such, it is very likely to occur a renewed rank structure in the coming weeks.
Another argument can be found in the currency markets. The recent breakout of Bitcoin came as the EUR / USD pair broke higher from 1.14 to 1.19. This breakout led to a drop in the USD against other currencies, which essentially triggered the massive breakouts in the prices of Bitcoin, gold and silver.
If the EUR / USD starts to correct from 1.19 to lower numbers, the USD will be strengthening. Such a rally will likely trigger a new corrective move in the cryptocurrency and commodity markets, leading to the scenario described above.
A limited range period would not be a bad thing for the markets, however, since altcoins have continued their good performance in these times. If the price of Bitcoin begins to correct, the focus could shift back to altcoins.
The views and opinions expressed here are solely those of the Author and do not necessarily reflect the views of Cointelegraph. Every investment and business move involves risks, you must do your own research when making a decision.