Bitcoin Price Is on the Verge of Breaking 7-Month Downtrend
Bitcoin price rebounded above $8,000, looking to test new highs in 2020 and break a 7-month downtrend with 5 months to go before the halving.
The price of Bitcoin (BTC) broke out of a 2-month range and rallied to $8,400 during this week. However, the price couldn’t break out of the downtrend and is stuck in a new range.
Is the price of Bitcoin already in a bull market, or is the price expecting continuation downwards?
Crypto market daily performance. Source: Coin360
Bitcoin price is hovering below resistance and trendline
The chart of Bitcoin is showing an apparent breakthrough in the $7,600 level. After this upwards breakout, the price started to rally towards the next resistance zone, found at $8,400. This is also the downwards trendline (blue diagonal line) at which the price is currently hovering.
BTC USD 1-day chart. Source: TradingView
The price is moving in a crucial range, as a breakout above $8,400 would lead to a breakout of the 7-months downtrend. However, losing the $7,600 level as support would lead to an acceleration downwards, and then the price is likely to be continuing towards $6,400 or $5,800.
BTC USD 4-hour chart. Source: TradingView
The 4-hour chart shows a clear retest of the $7,660 level as confirmation of support yesterday. After this test, the price of Bitcoin rallied towards $8,200 and got rejected while establishing a new range.
Total market capitalization aiming to break out of the downtrend
Total market capitalization cryptocurrency chart. Source: TradingView
The total market capitalization chart is showing a similar outlook for the Bitcoin chart. A clear breakout upwards during the past week, as the $195 billion resistance broke to the upside. This breakout resulted in a push towards $211 billion, which is the next resistance for the total market capitalization.
Similar, the downtrend is not done yet, as the market cap is still hovering below the trendline. However, a clear break above $211 billion would mean that the market capitalization will be ready to move towards $248 and $268 billion as the next target area.
Altcoins flipping necessary USDT levels as support
How are altcoins performing recently? They are doing reasonably well against their USDT pairs. If people want to trade altcoins, it’s compulsory to use both BTC