The price of Bitcoin (BTC) broke out of a ii-month range and rallied to $8,400 during this calendar week. However, the price couldn't suspension 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

Crypto market daily performance. Source: Coin360

Bitcoin price is hovering below resistance and trendline

The chart of Bitcoin is showing an credible quantum in the $7,600 level. After this up 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 toll is currently hovering.

BTC USD 1-day chart. Source: TradingView

BTC USD 1-day nautical chart. Source: TradingView

The price is moving in a crucial range, equally a breakout above $eight,400 would pb to a breakout of the 7-months downtrend. Still, losing the $seven,600 level as support would lead to an acceleration downwardly, and so the price is likely to be continuing towards $six,400 or $5,800.

BTC USD 4-hour chart. Source: TradingView

BTC USD 4-hr chart. Source: TradingView

The 4-hour nautical chart shows a clear retest of the $7,660 level equally confirmation of support yesterday. After this test, the price of Bitcoin rallied towards $viii,200 and got rejected while establishing a new range.

Full marketplace capitalization aiming to break out of the downtrend

Total market capitalization cryptocurrency chart. Source: TradingView

Total market capitalization cryptocurrency chart. Source: TradingView

The total market capitalization chart is showing a similar outlook for the Bitcoin nautical chart. A clear breakout upwards during the past calendar week, as the $195 billion resistance broke to the upside. This breakout resulted in a push button towards $211 billion, which is the adjacent resistance for the total market capitalization.

Similar, the downtrend is not done yet, as the marketplace cap is even so hovering beneath the trendline. However, a clear break above $211 billion would mean that the market capitalization will exist ready to motion towards $248 and $268 billion as the side by side target surface area.

Altcoins flipping necessary USDT levels as support

How are altcoins performing recently? They are doing reasonably well confronting their USDT pairs. If people want to trade altcoins, it'south compulsory to use both BTC and USDT charts as that would give a clear view of the movements of the coin.

Ether (ETH) provided an excellent breakout up in the USDT pair recently, as the nautical chart below shows.

ETH USD 1-day chart. Source: TradingView

ETH USD 1-day chart. Source: TradingView

ETH made a clear break of the $133 level, pushing price towards $145. A similar retest occurred and provided a skillful bounciness, which means that buyers stepped in at $135 and confirmed this every bit the new back up.

The toll of Ether is currently also hovering below the downwardly trendline. If the price can interruption out to the upside, targets of $167 and $190 are on the table.

A similar support/resistance flip is found on the XRP chart.

XRP USD 1-day chart. Source: TradingView

XRP USD ane-day chart. Source: TradingView

The XRP chart is showing a similar story as the other large caps: a movement to the upside in which a retest resulted in confirmation of the breakout. If the cost of XRP is stabilizing above the contempo resistance, a breakout and continuation are likely to occur.

This breakout would lead to a potential retest of the $0.xxx, the level XRP bounced on throughout 2022. On the other hand, losing the green level at $0.20 would hateful continuation to the downside.

Altcoin market place capitalization showing similarities with February 2022

Total altcoin market capitalization chart. Source: TradingView

Total altcoin marketplace capitalization chart. Source: TradingView

The full altcoin market capitalization shows similarities with the period in February 2022. The marketplace capitalization has been hovering below the $59 billion back up for a month, which was flipped into back up in the recent week.

A similar move was seen in Feb 2022 with the $49 billion levels. This retest marked the start of an uptrend in the months after. If the total altcoin market capitalization tin make a like move in this flow, a push towards $78-80 billion would be expected.

Bullish scenario Bitcoin

At this indicate, at that place are two unproblematic scenarios that are likely to happen for the current Bitcoin price action. Allow'south start with the bullish ane first.

BTC USD 1-day chart bullish scenario. Source: TradingView

BTC USD 1-mean solar day chart bullish scenario. Source: TradingView

Back up around the $7,600 area must be maintained for the bullish scenario. If the toll of Bitcoin tin practice that (which it looks like at this point), the price is gear up for continuation to the upside.

In that regard, a breakout of the downtrend is probable to occur. A breakout would trigger more people to footstep into the marketplace, causing a strong impulse wave to the upside.

If Bitcoin breaks the downtrend, and so the $9,500 and $10,000 levels will be the next targets. Another resistance level is institute at $8,800, just it'due south likely to be broken. The reasoning is simple: a breakout of a 7-months downtrend would give a stiff impulse movement and strong ownership ability. Thus, a push to $9,500 is expected to occur.

The $9,500 level is crucial as price bounced several times here during the summertime of 2022. Therefore, it is likely to be the next resistance.

Bearish scenario Bitcoin

BTC USD 1-day chart bearish scenario. Source: TradingView

BTC USD 1-twenty-four hours chart bearish scenario. Source: TradingView

The $7,600 level is also a crucial level for the surly scenario. If the cost of Bitcoin can't concord the $7,600 level equally back up, the breakout to the upside can then exist classified as a "fake-out," possibly leading towards the continuation of the downward movements.

An instance shows the large push towards $x,000 in Oct. The price of Bitcoin wasn't able to find support after this push and started to accelerate to the downside, dropping even lower than the recent low.

Thus, if the price of Bitcoin tin't hold $7,600, the sentiment will then flip bearish and traders will encounter where the toll of Bitcoin will find new support. In this case, acceleration to the downside would make me believe that $6,400 and fifty-fifty $five,600-5,800 could be tested as the adjacent support levels.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves gamble. Yous should conduct your own research when making a decision.