Bitcoin Price Finally Snaps Multi-Year Downtrend, but Is $20K Now Possible?

Bitcoin Price Finally Snaps Multi-Year Downtrend, but Is $20K Now Possible?

Bitcoin price set a new 2020 high after the price surged through the multi-year resistance level at 10,500.

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Bitcoin (BTC) price rallied within $50 of the $11,000 mark after managing a strong breakout above the $10,500 level. For the past 6 months analysts have kept a laser sharp focus on the key level and many forecast that Bitcoin price would soar once the multi-year resistance was obliterated. 

Crypto market weekly price chart

Crypto market weekly price chart. Source: Coin360

Cointelegraph contributor Keith Wareing suggested that Bitcoin price could rapidly move higher as traders’ sentiment will have grown increasingly bullish after the long-term resistance level becomes a new support. 

BTC/USD daily chart

BTC/USD daily chart. Source: TradingView

As the 1-hour chart shows, Bitcoin’s recent surge above the long-term descending trendline from the 2017 all-time high, and today’s move above $10,500 were fueled by high volume spikes. 

At the time of writing, the moving average convergence divergence and the relative strength index are both in overbought territory, showing bulls are currently in full control. 

Typically and overbought RSI and MACD serve as sell signals but Bitcoin’s price history over the years demonstrates that both oscillators can remain deeply oversold as the price surges to new highs. 

As mentioned in yesterday’s Cointelegraph market update, Bitcoin has rallied nearly 20% since July 21 and this strong move has occurred without a significant retest of the former S/R flips. 

Traders should keep a close eye on trading volume on the smaller time frames as a steep drop off in buy volume could possibly lead to a retest of the $9,500 level.  

Bitcoin daily price chart

Bitcoin daily price chart. Source: Coin360

According to CoinMarketCap, the overall cryptocurrency market cap now stands at $316.4 billion. Bitcoin’s dominance index currently at 62.8%. 

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Bitcoin price set a new 2020 high after the price surged through the multi-year resistance level at 10,500.

Bitcoin Breaks 7-Month Downtrend But Must Clear These Hurdles to $10K

Bitcoin Breaks 7-Month Downtrend But Must Clear These Hurdles to $10K

Bitcoin and cryptocurrencies are showing healthy bull market signs

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The price of Bitcoin (BTC) found strong support at $8,200 last week, after which it started to rally toward $8,800 earlier today.

Alongside with that, the total market capitalization of crypto found a support at $215 billion and starting to look bullish. Will this mean that the correction is over, and crypto is trending upwards?

Crypto market daily performance. Source: Coin360

Crypto market daily performance. Source: Coin360

Bitcoin still in an uptrend since the low at $6,500

Bitcoin is still trending upwards since the low at $6,500, as previous resistance zones have become support. A recent example is showing a bounce on the green area, which is the $8,200 level. This type of bullish support/resistance flips is a common occurrence in an uptrend market.

BTC USDT 1-day chart. Source: TradingView

BTC USDT 1-day chart. Source: TradingView

A break below $8,200 would have demonstrated weakness, as that level would not have provided enough buying pressure and support. Losing such a level would usually have been followed by a continuation downwards. An example is found after the push to $10,000 in November 2019.

The chart is also showing a clear breakout from the 7-month downtrend. A retest was done at $7,600, after which the price of Bitcoin rallied towards $9,200 for temporary resistance.

BTC USDT 4-hour chart. Source: TradingView

BTC USDT 4-hour chart. Source: TradingView

The 4-hour chart of Bitcoin is showing a healthy support/resistance flip at $8,200, after which price broke through the $8,500 resistance. Currently, the price of Bitcoin is facing the next resistance at $8,800.

However, it’s quite unlikely to see an immediate breakthrough at this level as the indicators on smaller time frames show exhaustion of this upwards move.

Additionally, some significant resistances are shown on the chart, i.e. $9,000 and $9,200-9,400, which are two hurdles to overcome if the price of Bitcoin wants to continue moving upwards.

On the support side, a retest of $8,500 looks quite healthy for confirmation of new support. Range-bound movements are now likely to happen if price can’t break through $8,800 or drop below $8,500.

Total market capitalization flips a crucial level for support

Total market capitalization cryptocurrency chart. Source: TradingView

Total market capitalization cryptocurrency chart. Source: TradingView

The total market capitalization of cryptocurrencies is showing an essential bounce from the blue zone (level around $217-218 billion). A retest there was quite healthy as anticipated in a recent article.

This retest is now completed and shows intense buying pressure as the total market capitalization has already rallied up to $238 billion. This retest also indicates confirmation of the uptrend with the total market cap breaking the 7-month downtrend as well.

The first hurdle to overcome now is the $247 billion level. If that is broken, continuation towards $270 and $300 billion is likely to occur.

Altcoins showing more strength than Bitcoin

The total market capitalization chart of altcoins is looking healthy The market cap rallied from $52 billion to $80 billion. Only a slight retracement occurred to $71 billion, which means that it is stuck in a narrow range.

Total altcoin market capitalization chart. Source: TradingView

Total altcoin market capitalization chart. Source: TradingView

If we check the rest of the chart, we can spot many tests of the $80 billion level in recent months. Around three tests have happened prior to this latest one, which means that the resistance should become weaker.

Remember, the more times a resistance gets tested, the more exhausted sellers will get, and the weaker a resistance becomes. On the other hand, this also happens with support zones. The $6,000 support of Bitcoin in 2018 was tested many times before it broke down.

Given that these tests of the $80 billion level occurred quite frequently, a breakout to the upside is the most likely scenario at this point, meaning that the altcoin market cap could rally towards $120 billion.

The bullish scenario for Bitcoin

BTC USDT 4-hour chart bullish scenario. Source: TradingView

BTC USDT 4-hour chart bullish scenario. Source: TradingView

The most bullish scenario would be a clear breakout of $8,800 and a continuation from there. However, as stated earlier, I find it unlikely to see such a move occur in one go.

A retest and consolidation would be more likely including a likely retest of the $8,500. This is healthy and would be almost required before the price of Bitcoin can continue to face higher resistance levels.

If Bitcoin can hold the $8,500 area for support, I see a breakthrough of the $8,800 and $9,000 as likely, after which $10,000 will become the primary target. Moreover, clearing $10,000 could bring the price of Bitcoin towards $11,000 as well.

The bearish scenario for Bitcoin

BTC USDT 4-hour chart bearish scenario. Source: TradingView

BTC USDT 4-hour chart bearish scenario. Source: TradingView

Typically, the bearish scenario has a similar pattern in the beginning, as BTC needs to be rejected at the $8,800 level. However, the difference is in the subsequent pattern.

If the price of Bitcoin is to make lower highs with weak bounces, the downward trend is likely to resume. If this occurs, I’d be aiming for bearish retest (support/resistances flips) of the $8,500 level as a potential short opportunity. The main target would then be the $7,600 area.

But first, the price needs to be rejected at $8,800-9,000 to get these scenarios going. Overall, the $8,100 support/resistance flip doesn’t say that we’re bearish at this point. Especially, since that price has broken at a 7-month downtrend.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.


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Bitcoin and cryptocurrencies are showing healthy bull market signs

Bitcoin Price Drops Under $10,000 as Downtrend Continues

Bitcoin Price Drops Under $10,000 as Downtrend Continues

Bitcoin has slumped below $10,000 and pulled other top-20 coins down, with none of them reporting gains

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Monday, July 1 — Bitcoin (BTC) lost its grip on the $11,000 price mark earlier today to sink below $10,000 at press time. The leading cryptocurrency has pulled other top-20 coins down, with none of them reporting gains, according to data from Coin360.

As Cointelegraph reported earlier, market analysts were expecting a 40% correction from the recent highs of around $13,900. The current price of bitcoin means that this target is now nearly reached. 

“$9715 will be the 30% correction for BTC,” commented popular trader Josh Rager this morning. He added that a four-digit price is now a “gift” in the short-term as the overall long-term trend remains bullish. 

Market visualization

Market visualization courtesy of Coin360

Bitcoin has lost 6.50% over the past 24 hours and is trading under $9,900 at press time. On its weekly chart, the coin has remained volatile, surging to $13,756 on June 26 and slumping to its current price as the lowest mark.

As reported Monday, BTC has been profitable as an investment 98.2% of the days since its creation, per data from holdcalc.com. Counting 3,830 days back — to January 4, 2009, one day after the coin’s Genesis Block was hashed — holdcalc’s data suggests that on 3,671 of these, it was profitable to buy BTC as an investor.

Bitcoin 7-day price chart

Bitcoin 7-day price chart. Source: Coin360

Coin360 shows that ethereum (ETH) has experienced a drop by roughly 6% on the day to trade at $277 at press time. The second largest cryptocurrency has seen a drop of over 12% on its weekly chart, while in terms of its monthly performance ETH is 2.87% in the green.

Ether 7-day price chart

Ether 7-day price chart. Source: Coin360

On the top-20 coins list, one of the best recent performers Chainlink (LINK) has registered a double-digit loss by nearly 10% to have its current price at the $3.27 mark. Litecoin (LTC) is down by 6% on the dat and is trading at around $115 at press time.

Total market capitalization of all digital currencies is now under $300 billion at around $294 billion at press time.

In traditional markets, oil surged today, with U.S. crude futures for August climbing $1.65, or 2.8% to $60.12 a barrel, according to CNBC. At the same time, financial markets were buoyed by a thawing of U.S.-China relations after the countries’ leaders agreed to restart trade talks.


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Bitcoin has slumped below $10,000 and pulled other top-20 coins down, with none of them reporting gains