Last week there was a mini-rally in the price of Bitcoin (BTC) which was very significant for the cryptocurrency industry as the total market cap for the sector went up also. This is an indication that there is new money entering the industry instead of the rotation between bitcoin and other cryptos.
BTC to see major resistance at $10,500 triggering a bull run
BTC is showing strength after it broke a key resistance level this past week thus putting within reach of the $10,000 mark. The price held at a vital support level at around $9,000 before the mini-rally taking it to $9,600. However, despite this general market trend, bitcoin is yet to break out of this range since May halving. But most importantly BTC’s rally occurred as global markets tumbled towards the end of the week.
The current support level ranges between $8,800 and $9,000 with the price struggling with resistance at around $9,600. Any breakout could see the coin retesting $9,800 with the next resistance in the coming days expected to be around $10,100 to $10,300. On a macro level, BTC could see major resistance at $10,500 which it will have to break to trigger a bigger bull run.
In the last few days, volume and volatility have been declining as the range narrows. Trading volume is still very far from the highest trading days in May and June. Should correction occur, the first support level will be around $9,500, trailed by $9,359 which is the current 50 days moving average. If the price falls below the $9,200 mark then it will turn bearish in the near-term.
Crypto market cap breaks out
The total cryptocurrency market capitalization signifies a strong breakout from the $270 billion levels which is a level comparable to the $10,100 mark for BTC. Interestingly total market capitalization appears to be breaking out yet BTC is stuck in the narrow range. In general, there is a bullish case for the total crypto market cap provided support level holds between $265 billion and $270 billion.