All markets have been showing a strong surge in the past weeks, including Bitcoin (BTC) and cryptocurrencies. The price of Bitcoin has seen a 100% surge in a thing of three weeks since the crash.

Still, is such a rally sustainable in the electric current economic environment? And what is needed for a further continuation up in the cryptocurrency markets?

Crypto market daily performance. Source: Coin360

Crypto market daily performance. Source: Coin360

The price of Bitcoin loses 3-week old trendline

The price of Bitcoin has been seeing a significant rally since the massive crash on March 12, every bit the price rallied virtually 100%. However, the rally came to an cease every bit the uptrend was lost two days ago.

BTC USD 12-hour chart. Source: TradingView

BTC USD 12-hour chart. Source: TradingView

The 12-hour chart is showing a articulate breakdown of the upwardly trendline, indicating weakness and a probable reversal effectually the corner.

The toll of Bitcoin couldn't attain the side by side resistance, as the toll rejected at $vii,400, while many traders were anticipating a rally towards the $7,600-7,800 level.

Further, the 12-hour nautical chart is showing that the price of Bitcoin is holding on to the concluding level of back up earlier a further heavy dropdown is set to occur.

BTC USD 12-hour chart. Source: TradingView

BTC USD 12-hour chart. Source: TradingView

The last support area for bulls is in the $half-dozen,750-six,800 area. The first sign of weakness was losing the yearly and monthly level at $7,200. Nonetheless, losing the $vi,750-half dozen,800 would trigger a further heavy dropdown and would trigger a higher volume driblet.

The recent drib down didn't crusade a high volume profile while losing the next support zone at $half-dozen,750-six,800 will probable provide a giant sell-off towards the support zone at $5,800 and confirmation of a further downwards tendency.

The reason for that is that the toll of Bitcoin would be making lower highs and lower lows initiating the continuation of a downtrend.

Weekly fourth dimension frame needs to close higher up 100-Week MA

BTC USD 1-week chart. Source: TradingView

BTC USD 1-week chart. Source: TradingView

The weekly nautical chart is the near crucial chart at this bespeak. Closing the weekly candle to a higher place the crimson zone and preferably higher up $half dozen,900 would give bullish signals of continuation. The resistance level at $6,900 volition exist cleared, and what's more, the price of Bitcoin would reclaim the 100-week MA (Moving Average), which tin can be stated every bit a bullish signal for the market.

Withal, the wicky structure of the contempo rally up confluent with the decreasing volume implies a downward examination is likely to occur.

In this case, if the weekly candle doesn't shut above the 100-Week MA, a further drop is expected for the markets, which implies the support levels at $5,000-5,200 and $iii,800-iv,000 as the major support levels to watch.

Full marketplace capitalization crypto as well showing weakness

Total market capitalization cryptocurrency 12-hour chart. Source: TradingView

Total market place capitalization cryptocurrency 12-hour chart. Source: TradingView

The total market capitalization of cryptocurrencies is also showing weakness as the market capitalization rejected at the $205-210 billion resistance zone.

Generally, the full marketplace capitalization is showing a clearer picture than the Bitcoin chart alone. The market capitalization rallied towards $210-220 billion, which was the area before the massive dump occurred. This area is similar to the level of $7,600-7,800 on the Bitcoin chart.

The $210-220 billion and then saw a swift rejection, after which temporary support at $185 billion was constitute.

However, losing the $185 billion will imply further downwards momentum, and the adjacent levels are and so the $105-115 billion, $130 billion and $153 billion. Each ane of these levels would indicate that a significant drop is to be expected.

Altcoin market capitalization crypto 12-hour chart. Source: TradingView

Altcoin marketplace capitalization crypto 12-hour chart. Source: TradingView

The altcoin marketplace capitalization shows a worse picture than the full market capitalization, as information technology'south currently hanging between two levels. Support is establish 8% lower at $62 billion, while the total market capitalization of altcoins is massively rejected at the upper resistance level.

This implies that altcoins are going to meet a more than severe motility than Bitcoin. In other words, the moment BTC loses the $6,750-half-dozen,800 area for support, it's to exist expected that altcoins are going to come across a more substantial drop than Bitcoin.

The bullish scenario for Bitcoin

BTC USD 3-hour chart. Source: TradingView

BTC USD 3-60 minutes nautical chart. Source: TradingView

The bullish scenario is pretty straightforward only less likely at this point. The toll of Bitcoin just lost an up trend, which implies farther downwards force per unit area to occur.

Still, there's a possibility that the dropdown is a fake-out. For that to be the example, the toll of Bitcoin needs to hold the $6,750-six,800 area for support, in the offset place.

After that, the chief goal to get for is reclaiming the yearly level at $7,200 for support. Once that happens, a further up button is to be expected. Targets to exist divers are $7,800-7,800 as the adjacent levels.

Such a motility upwards should preferably occur over the weekend every bit and then the weekly candle would close above the 100-Calendar week MA.

The bearish scenario for Bitcoin

BTC USD 3-hour chart. Source: TradingView

BTC USD 3-hour chart. Source: TradingView

Every bit stated in the bullish scenario, information technology's not expected that we're going to break back farther upwards. Therefore, the nigh probable scenario would be a bearish scenario where the price continues to drop.

If the weekly candle doesn't manage to close in a higher place the 100-Week MA, a swift drop is expected, confluent with losing the $six,750-6,850 range.

Yet, over the weekend, a potential rally towards $7,050-seven,150 could occur to confirm the previous support becoming resistance.

Losing the $half-dozen,750-6,850 expanse would imply that the market place is showing weakness, and the side by side massive back up area to scout is the $5,600-v,800 expanse. In between potential temporary support can be found at $6,300.

The views and opinions expressed here are solely those of the writer and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. Y'all should conduct your own enquiry when making a decision.