The cryptocurrency market saw a shakeout as fake news about Litecoin (LTC), caused volatility to spike. The market structure didn’t change. Bitcoin’s price may be at its lowest point, as a golden cross is beginning to form.
Additionally, record-breaking exchange reserves have been reached, which is a huge signal of strength. This suggests that many investors are withdrawing their Bitcoins from exchanges, decreasing the total supply that can be traded on the market.
The golden cross will make Bitcoin explode.
BTC/USD 1-day chart. Source: TradingView
A few key points are highlighted in the daily chart of BTC/USD. First and foremost, the possible golden cross is about to occur. The death cross was the main focus in the summer. Many traders anticipated more downside due to the shift in sentiment.
However, the market has been trending upwards since then, with the cross between moving averages (MAs), which is a very lagging indicator, being a strong indicator. However, even if there is a cross, that doesn’t necessarily mean the market will continue to move in the same direction.
A golden cross is currently a bullish signal. This is especially true when Bitcoin’s price breaks above the MAs. These levels could be used as support for a bigger rally if Bitcoin’s price breaks above the MAs.
Important levels to monitor on the daily BTC price charts
BTC/USD 1-day chart. Source: TradingView
The market experienced a sharp correction last week as Bitcoin’s value plummeted from $52,000 to $42,000. The price of Bitcoin reached a wonderful support level which resulted in a long wick. This long wick suggests buying pressure and a new level of support.
A volatile move occurred in the last few days as a result of fake news regarding Litecoin’s partnership with Walmart. Initial reaction was a huge bounce that was quickly followed by a substantial correction.
It is a good idea to zoom out to check the markets at higher timesframes during volatile moves. These will give you an indication as to the critical levels to be on your guard.
These are the critical levels to be on guard and can still be found between $42,800-44,000. Upward continuation is possible as long as this region maintains support. The bearish divergence was accompanied by a heavy correction. However, the worst is possible if the markets remain above $42,800-44,000
Fake news about Litecoin caused market volatility. However, the critical support between $42,800 & $44,000 was maintained. That’s the key conclusion.
To be positive, Bitcoin must first break through $47,000 as it is the current resistance. As a final hurdle, a possible all-time high of $50,000 can be reached if that fails.
Support is crucial for total crypto market cap
Chart of crypto 1-day total market capitalization. Source: TradingView
The crypto market capitalization shows that there is significant support. If the total market capitalization is above $2 trillion, then more upside is possible to an all-time high.
There is a slight difference in Bitcoin’s price because the total market capitalization has reached the all-time highest zone. There are increased chances that Bitcoin will break out towards new all-time highs once the total market capitalization has retested that all-time low zone.
Most likely, however, crypto’s total market capitalization will surpass Bitcoin faster than Bitcoin. Altcoins have outperformed Bitcoin in recent times.
Bullish divergence, falling wedge play out
BTC/USD chart for 4 hours. Source: TradingView
The Bitcoin four-hour chart shows a possible falling wedge structure that could break to the upside. As resistance at $47,000 has been acting as a strong resistance since the recent correction, it is crucial that the upside breakout occurs.
Bitcoin’s price will rise above $47,000 once it reaches $50,500. There are not many levels between which the price can reject from. The previous correction was very vertical.
This is not a guarantee that Bitcoin will rise in value. If Bitcoin can make a lower low than $45,000, this will confirm the bullish divergence and could lead to a breakout towards $47,000. This remains the strong resistance to break.
The critical support that you need to keep your eyes on is the $42,800-$44,000 area. If this support does not hold, then the $38,500 to $40,000 level should be your next focus.
com. You should do your research before making any investment or trading decision.