Bitcoin (BTC) cost dropped severely in the previous week, falling from $19,500 to $16,000. Corrections never occur smoothly every bit dropdowns are frequently sudden and painful. The contempo correction isn't much different as the drop occurred in a affair of hours.

Since and then, Bitcoin'south price consolidated in a higher place $xvi,000, which marked a temporary bottom. The principal question is whether the correction is over or not. A determining factor will exist whether or not BTC price can reclaim the crucial levels that will support further upwards momentum.

Bitcoin is in the heart of a weekend relief rally

BTC/USD 1-day chart. Source: TradingView

As the daily chart shows, a crucial back up area was established around the $16,000 surface area. Bitcoin's price did lose the uptrend on lower timeframes, through which a chain reaction of liquidations occurred. This chain reaction made the toll accelerate downwards.

Bitcoin'south toll frequently takes the staircase upward and the elevator downwardly. When this happens, the daily timeframe marks the crucial back up levels to hold, through which the zone around $sixteen,000 is a massive area to hold.

The chart shows temporary support and bounces from this area, as Bitcoin's cost is currently $i,400 higher than the support level.

Bitcoin must break $18,000 to regain bullish momentum

BTC/USD 1-hour chart. Source: TradingView

The hourly chart shows a clear breakdown from the $18,600 support level, which acquired the chain reaction downwards.

Nevertheless, during this correction, some lower timeframe signals are showing crucial resistance levels starting at the $18,000 level. The price of Bitcoin dropped toward the support zone at $17,200, made a slight bounce upward, simply couldn't break through $18,000.

Through that failure of breaking $18,000, a resistance expanse is established. This resistance area needs to break to sustain the bullish momentum and and so flip dorsum bullish on the lower timeframes.

The next hurdle is found at the $eighteen,600 area, which failed to sustain support in the previous run upward.

Total market cap is set for more downside

Full marketplace capitalization cryptocurrency 1-day chart. Source: TradingView

The daily chart of the total marketplace capitalization shows an apparent breakdown, as the full market capitalization dropped significantly later on reaching the one.618 Fibonacci level.

Nevertheless, the bullish role is a new higher loftier and a breakout above the $400 billion resistance zone.

In this run-upwardly, the massive resistance zone at $400 billion never received confirmation through a retest. In that perspective, information technology's very likely to meet a farther correction towards $400 billion to confirm the previous resistance zone to become back up.

What is a likely scenario for Bitcoin?

BTC/USD 1-day chart. Source: TradingView

The most likely scenario would be a relief rally towards the $18,000 to eighteen,500 expanse. Through that, the $18,000 to 18,500 area is immediately the crucial breaker of the scenario described.

If the $18,000 to18,500 breaks, a farther sustained rally toward new all-time highs is a very likely outcome. However, failing to break through this resistance zone would establish a new range.

This range is interim between $sixteen,000 to xviii,000, in which the $18,000 resistance is a confirmation of a new lower high. Lower highs signal a down tendency, and therefore could the market expect further corrections due south.

In that matter, a correction towards $fourteen,000 isn't unlikely at this point, as that's the previous high in June 2019 and could warrant a massive support/resistance flip for the markets.

If Bitcoin's toll holds in a higher place $14,000, the next rally would most likely bring the price of Bitcoin above a price of $30,000.

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