• Bitcoin remaining stable after a cryptocurrency exchange getting hacked over the weekend is promising for the market’s maturity. But What price must Bitcoin reclaim for a bull market in October?

    Volatility was expected during the week regarding the expiration of a large amount of futures. However, this didn’t really occur while the macro-economic environment also remains uncertain.

    The hacking of an important cryptocurrency exchange on Sep. 26 didn’t influence the price at all, which is a good signal for the crypto markets and a great signal for the market’s maturity.

    Bitcoin still stuck in a range on the daily timeframe

    Right now charting is really simple. The price of Bitcoin fell below $11,100-11,300 earlier this month, establishing new support at $10,000.

    The level that has been lost, the $11,100-11,300 zone, is now confirmed resistance as well as the new upper resistance.

    On the downside, a potential fall towards $9,600 wouldn’t be unexpected as the level around $9,600 is still untested with the CME futures gap continuing to linger.

    The 4-hour chart indicates a clear bullish divergence implying a short-term trend reversal. Combined with the overly bearish sentiment across social media, it was expected that the market experience such a relief bounce.

    The same bullish divergence was faced with other cryptos, so the relief bounce was felt across the majority of the market.

    However, the $10,800 barrier is a difficult hurdle to take. If it can be overcome as a resistance level, the $11,100-11,300 area comes back into play.

    This $11,100-11,300 area is the final step for Bitcoin price before the continuation of the bulls in October. If Bitcoin’s price can break through that resistance zone, a test of the recent highs at $12,000-12,400 is on the table.

    Total market capitalization looking for support

    The 1-week chart of the total market cap of cryptocurrencies indicates a clear pattern. A fresh higher high was printed in the previous months, marking the potential start of a new trend.

    After a higher high, a new higher low has to be made in which a range-bound structure can be defined. The best area for such a higher low can be the previous resistance zone, or at $250-275 billion, would be a support/resistance flip warranting continuation.

    If that area holds, it also says why the beginning of a new cycle is relatively dull. During the beginning of a new market cycle, levels are flipped as support/resistance, after which months of range-bound periods can happen. An example is seen with the price movements of Bitcoin in 2o16, in which halving happened.

    During these timeframe, the price of Bitcoin stabilized in an accumulation range throughout 2015. After this accumulation range, BTC’s price broke out and rallied towards the next resistance zone.

    That ended up with a 6-month long sideways range. A renewed breakout happened, and another 6-month sideways range began. Therefore, the current market sentiment can be compared with that time.

    But it will be interesting when the total market capitalization and Bitcoin break into price discovery (over $20,000) as then potential parabolic runs can come back into play.

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