Bitcoin (Bitcoin) And the cryptocurrency market has been accelerating significantly in recent weeks, as Bitcoin has soared 60% from its July low, while Ethereum (Ethereum) Showed a strong momentum with a 90% increase because the altcoins have risen across the board.
The mood has also undergone a major shift. Three weeks ago, most people were discussing the possible fall to $20,000, including the impact of death crosses. but now, A golden cross Bitcoin may have a potential breakthrough above 48,000 USD.
Key resistance at 48,000 USD
The daily chart of Bitcoin provides us with a lot of information. The market is approaching a substantial resistance zone, as a breakthrough of $48,000 will mark a bullish continuation and a potential test of all-time highs.
Therefore, the $48,000 area is a key price point because it was the support before the market began to spiral downward. Now, this resistance is undergoing the first test, and it is unlikely to be broken on the first attempt.
On the other hand, the market reversed the downward trend. Since the historical highs, lower highs and lower lows have been created, heralding a bear market. This downward trend has led to a more than 50% correction, which has triggered expectations of a long-term bear market.
The recent gains negated this bearish argument, as a new higher high was established. Next, a new higher low was created, confirming a new direction.
Therefore, if the market cannot break through $48,000 in the next few weeks, the support level that needs attention and the key level that ultimately maintains this momentum will be around $37,500. Simply put, if BTC manages to stay above this level, it will create higher highs.
However, the last thing to watch out for is the potential bearish divergence. This has not been confirmed. However, given the recent weakness near the 200-day moving average, as the market approaches higher time frame resistance, there may still be a callback in the near future.
The total market value faces the ultimate resistance zone
The total market value of cryptocurrencies broke the resistance zone of $1.75 trillion. The next resistance zone is approaching, as the key breakout before the May crash was about $2 trillion.
A structure similar to Bitcoin was found there, at a price of $48,000. Therefore, an immediate breakthrough is unlikely.
If the market rejects $2 trillion, a higher low must be established. Similar to Bitcoin’s support level of USD 37.5K, the total cryptocurrency market value can also be said to be approximately USD 1.5 trillion.
The market value of altcoins is subject to a 25% correction risk?
The market value of altcoins showed a key resistance, reaching $1.15 trillion, which is also equivalent to Bitcoin’s $48,000. Similarly, the first attempt to break through is unlikely, so some S/R range should be expected.
Bitcoin: key levels to watch in a lower time frame
The key level that Bitcoin has maintained to avoid any collapse is between $448,000 and $451,100. The region must maintain support to prevent a potential reversal. The key resistance for Bitcoin price is between $47.5-$49K. If this situation is broken, the continuation may reach 55,000 US dollars and may hit a record high.
However, once a reversal occurs, many support levels will be found for the price of Bitcoin. The first level of support is 42.6K USD, while the large support zone is 40.8K USD.
This 15% correction is very healthy for the market and gives people a chance to re-enter at a slightly lower level. However, the price of Bitcoin should remain above $375,000 to maintain the current bullish momentum of higher highs and higher lows.
If this is not possible, then the market may reserve more blood.
The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading action involves risk, and you should conduct your own research when making a decision.
The views and opinions expressed here only represent author It does not necessarily reflect the views of Cointelegraph. Every investment and transaction involves risks. When making a decision, you should conduct your own research.