The price of Bitcoin (BTC) has shown a strong surge in the past weeks, as the cost rallied from $three,750 to $6,900. Even so, the crucial $6,900 level wasn't broken to the upside and confirmed as resistance. A similar move occurred on the disinterestedness markets, every bit the The states' equity markets surged 25% in one week, merely saw a sharp selloff of 4% in the concluding trading hour, going into the weekend.

These movements lead to the general question: is there more claret to come for Bitcoin and crypto?

Crypto market daily performance

Crypto marketplace daily performance. Source: Coin360

Bitcoin price tin can't break $6,900

The daily chart is showing a clear rejection at the $6,900 level, which is by and large not a bullish perspective to look for. For bullish momentum, this surface area at $6,900 needed to be cleared, through which targets of $7,800 and $9,200 were back on the table.

BTC USD 1-day chart

BTC USD i-twenty-four hours chart. Source: TradingView

However, the breakout didn't occur, and therefore the price is now seeking support levels. Main areas to scout for are the $5,600-5,800, $4,750-4,900 and $4,250-4,400. All these zones are essentially higher timeframe back up levels and should be used for potential long opportunities.

On the upside, the resistances are hands found through levels too. These levels are $half-dozen,350-6,400, $six,550-six,575 and $6,850-7,000. Breaking through the last resistance at $6,850 would certainly reintroduce bullish momentum.

Weekly timeframe rejects at 100-Week Moving Average

BTC USD 1-week chart

BTC USD one-week chart. Source: TradingView

The weekly timeframe is indicating a clear picture. The resistance is the 100-Week MA at $6,900, the support levels are found at the 200-Week MA ($five,500-5,700) and 300-Week MA ($three,900-iv,000).

Given that the cost harshly rejected from the 100-Week MA, further downside is likely to be expected from the markets.

But what does this chart tell us more? Well, markets in general mature and take longer to reach their new peak afterwards the previous cycle. This statement means that the current cycle will accept longer than the terminal cycle.

The Bitcoin markets have seen several cycles, through which 2022-2014 was the first bike, which saw the market balance on the 100-Week MA. The 2nd cycle from 2022 to 2022 took iv years and constitute support at the 200-Calendar week MA.

BLX Index 1-week chart

BLX Index 1-week chart. Source: TradingView

Given that the cost of Bitcoin is showing a surly outlook — while even so having a positive correlation to the disinterestedness markets — further downwards momentum is unsurprisingly expected.

Alongside with that information, at that place's too a conclusion to exist drawn from the previous cycle. Every bike takes longer than the previous one, due to the maturity of the markets.

Combining these arguments results in the conclusion that the electric current bicycle unremarkably volition take longer than the previous one. In other words, a lesser formation in the $3,800-4,000 area for several months wouldn't be a surprise to investors, later which the bull market place begins in 2022 and lasts through 2025-2026.

A breakdown of the 200-Week MA at $five,575-five,800 is necessary for a test of the 300-Week MA. If such a breakdown occurs in the coming weeks, then we can meet a significant drop towards $3,800-4,000 every bit the side by side target as momentum builds.

Relief bounciness on disinterestedness markets

Dow Jones Index

Dow Jones Index. Source: TradingView

Equity markets have seen similar moves equally in the cryptomarkets, and take seen one of the most pregnant surges in a period of a week. The Dow Jones alphabetize surged 25% in one calendar week despite a new record of jobless claims and a skyrocketing number of confirmed coronavirus cases.

Equally discussed in the previous article, bubbles pop usually provide a 38-50% retrace in the offset drop. The Dow Jones index dropped 40%, striking a robust yearly level at 18,000 points, and bounced upwards with 25%.

Crucial levels to be watched are the 21,750-22,000 and 23,000 points areas. The moment that these levels are rejected, further down momentum is likely to occur. Given that the equity markets accept seen a positive correlation with other markets recently, further downwards momentum can, therefore, be expected from the cryptomarkets too.

The bullish scenario for Bitcoin

BTC USD 2-hour chart bullish scenario

BTC USD ii-hr chart bullish scenario. Source: TradingView

The bullish scenario is straightforward just less probable to occur given that the price merely lost a significant support level and tendency.

Even so, the moment that the price of Bitcoin tin break through $six,600 and repossess that level every bit support, further upwards momentum is warranted. The reasoning is that the previous support level can be confirmed equally support again, turning the recent drib into a fake-out.

If such a reclaim occurs to the market, information technology'southward expected to run across continuation towards $7,500 or $7,800.

The bearish scenario for Bitcoin

BTC USD 2-hour chart bearish scenario

BTC USD two-hour chart bearish scenario. Source: TradingView

Unfortunately, the surly scenario is more probable to occur at this moment. Price rejected at the $6,900 barrier, consolidated at that level for several days and broke down. The price of Bitcoin likewise lost an uptrend, which all indicates that there'south more than downwards momentum to come.

However, in the short-term, there's a possibility that the price of Bitcoin volition retest some upper levels for confirmation of resistance. The levels to be watched are the $6,375-half dozen,400 level (monthly level) and the $6,550-6,600 level (which is the previous support).

If the cost of Bitcoin rejects at either of the two levels, further downwards momentum is warranted with the adjacent potential pivot points being $v,600 and $5,750-five,800.

As discussed previously, information technology'due south likely to wait further downside on all markets given the economic instabilities around the earth. It's crucial to remain solvent and patient in these markets. Markets can remain irrational longer than you can remain solvent.

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 chance. You should conduct your own enquiry when making a decision.