The toll of Bitcoin (BTC) tumbled down from $9,200 to $viii,450 yesterday. However, bulls are defending the $viii,600 level with strength. The market needs to find a support surface area before the continuation of the bullish momentum is probable. Did the market find ane already?

Crypto market place daily operation. Source: Coin360

Bitcoin cost finds resistance at $9,200

The price of Bitcoin rallied towards the $nine,200 level through the past weeks, which makes it a 43% rally in but a month. However, the 0.618 - 0.65 Fibonacci level (the gilt pocket ratio) provided resistance, and the price of Bitcoin dropped downward yesterday.

BTC USDT ane-day chart. Source: TradingView

Similarly, the $9,200 level used to be strong support during the summertime of 2022 and can, therefore, be classified every bit a major hurdle to accept for Bitcoin. If this level breaks upwards, a healthy continuation of the bullish momentum is likely with targets of $10,000 and $11,000 on the table.

BTC USDT 4-hour nautical chart. Source: TradingView

The 4-hour timeframe is showing a significant rejection from the $nine,200 level. This rejection was created through a weak breakout of the $9,000 level, which caused the RSI to make bearish divergences and to 'trap' traders in this direction. Usually, a breakout causes an influx of volume, unless the breakout is a fake-out.

Additionally, the chart shows that the price is currently stabilizing around the loftier of January the 8th. This high is found at the $8,470 level.

Weekend movements create CME gaps

BTC USD 4-hour CME chart. Source: TradingView

Movements during the weekend create CME gaps, and CME gaps are likely to exist filled soon after. Given that the dropdown occurred on Lord's day, there'due south a new gap created on the charts. This gap is defined between $eight,765 and $8,865. Does this mean that the price is probable to motion upwards? No, but the CME gaps are being used as a new indicator or narrative to trade.

Total market capitalization struggles to break $250 billion

Total market capitalization crypto 1-day chart. Source: TradingView

The total market capitalization chart shows a significant resistance at $250 billion. This resistance is compared with the $nine,200 level as the total market capitalization used to take this level equally support through the summertime of 2022.

From this perspective, a bullish deviation marked the bottom of the capitalization chart, which acquired the rally towards $250 billion. However, the chart is showing a rejection of $250 billion, which makes me believe that we're going to come across $215 billion as a retest for support.

Full marketplace capitalization crypto iv-hour nautical chart. Source: TradingView

The 4-hour chart is showing similarities with the Bitcoin nautical chart. There was a harsh rejection at $247 billion, after which capitalization bounced at the support of $230 billion. If the total marketplace capitalization can't pause through $240 billion, and then this could be a bearish trap.

If nosotros see a bearish trap, continuation downwards would be probable, aiming to become a retest of the $215 billion zones.

Keeping this data in mind, what scenarios are there for Bitcoin over the short-term?

Bullish scenario

BTC USDT bullish scenario. Source: TradingView

The momentum is still upwards, given the stiff upward movement in recent months. The price of Bitcoin also broke a 7-month downtrend, which means that dips are usually for ownership. However, what else is needed for the toll to go on moving?

Essentially, it starts with creating a higher high, and that's a breakthrough of the $9,200 resistance expanse. But, to get to a higher loftier, the price needs to find support to start. Two key areas are defined in the chart to a higher place; $8,460 (the current support area) and $8,200 (the green zone).

If the price of Bitcoin manages to concord either $eight,460 or $viii,200, then continuation to the upside is likely to occur. Nonetheless, such a motility will normally accept time, as the price first needs to define the range and accumulate.

From such an accumulation, the adjacent impulse moving ridge could occur, and targets from such an upward motion are defined at $10,000 and $ten,900. Simply kickoff, $eight,900 and $9,200 are hurdles on the way, which first need to be cleared.

Surly scenario

BTC USDT bearish scenario. Source: TradingView

Over the brusk-term, a bearish scenario is more probable as the price was rejected hard at the $9,200 level. This suggests that the cost of Bitcoin needs some consolidation before continuation.

Notwithstanding, in that location's notwithstanding the CME gap at $8,865 which traders will be observing. Given that there's a CME gap, a weak up push towards this level is likely to occur. But, if at that place's no volume coming in and no quantum of this level, I wait the cost to drop down and test lower levels for support.

If this scenario plays out, the levels that I'm aiming for are $viii,250 and mainly $seven,700. Is that a bad sign for the marketplace? Not necessarily. The market is not in a parabolic phase yet, which ways that backtests and support tests are normally a sign to buy the dip. If Bitcoin wants to maintain momentum upwards, it should not drop below $7,700.

Nevertheless, the price is currently moving $1,000 above this support zone. Meaning, currently there is no reason to be panicking or debating the expanse as well much.

The views and opinions expressed here are solely those of the author and practise non necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. Y'all should conduct your ain inquiry when making a decision.