The volatility and volume in the Bitcoin (BTC) markets dropped downwards over the past week as the price of Bitcoin relatively stabilized. Stabilizing markets with decreasing volatility and volume usually means that spectacular movements will come back to the markets soon.

However, what should investors expect from the markets over the short-term? The weekly candle airtight below the 100-week moving average, which is a strong signal for the bullish/surly momentum of the markets.

Crypto marketplace daily performance. Source: Coin360

Bitcoin's weekly candle closes beneath 100-WMA

The weekly candle was unable to close above the 100-WMA, which is a crucial indicator for bullish/surly momentum. The moving average is a meaning indicator of higher time frames, as the 100 and 200-WMA are often used in equity markets to prove the bullish and bearish momentum of the markets.

BTC USD 1-calendar week chart. Source: TradingView

For example, the 100 and 200-WMA have been providing back up for the crypto market throughout the whole bull cycle of 2022-2017. Similarly, the 200-WMA has provided support for the equity markets since 2009.

Aslope the shut below the 100-WMA, Bitcoin price couldn't close higher up the horizontal resistance level of $vi,900-$7,300.

From a bullish perspective, a crucial breakout has to occur higher up $6,900-$7,300. One time the price of Bitcoin maintains this expanse for support, the 100-WMA can be classified equally support. Such a move would also warrant further upwards momentum towards $9,500 and the possible first of a bull market place.

Notwithstanding, a breakout didn't occur, which means that back up levels are however on the table.

The back up levels on the weekly timeframe are structured in two big blocks. One is found at the $5,000-$5,200 level, just beneath the 200-WMA. The second one is found between $three,700-$four,100, which is confluent with the 300-WMA. These areas should be watched for support if Bitcoin starts to retrace.

Daily candles moving in a narrow range

BTC USD 1-day chart. Source: TradingView

The 1-24-hour interval chart is showing that the cost of Bitcoin is moving inside a narrow and indecisive range.

It's also showing that the cost rejected massively at the $7,400 resistance zone, after which a driblet towards the back up of $6,600 occurred. This level is currently holding, simply on the other hand, the $vi,900 level is acting as resistance hither likewise.

A break below the $6,600-6,700 level with a candle close on the daily timeframe will brand the markets target the expanse effectually the monthly level of $six,250-$6,300 or even $5,800-$5,850.

Yet, a articulate break and flip of the $six,900-$half-dozen,950 level would mark continuation, and then all eyes are on $7,600-$8,000 equally the next primary level to go for.

Total market place capitalization property the $185 billion back up

Full market place capitalization cryptocurrency 1-solar day chart. Source: TradingView

The crypto total market place capitalization is showing that the marketplace cap is holding support at $185 billion, which is a massive back up to continue.

The chart is likewise mark a substantial expanse of resistance around $205-$220 billion, which is crucial for bulls to intermission to run across continuation towards $240 and $280 billion. Aside from that, the 100-Week MA wasn't broken past week either on the total marketplace capitalization.

Similarly to the Bitcoin chart, a breakthrough below $185 billion would likely lead towards a significant drop, and eyes should exist on $153 and $131 billion next.

Full altcoin market capitalization cryptocurrencies 1-day chart. Source: TradingView

The altcoin market capitalization is showing a similar picture of the total marketplace capitalization. The $60-$62 billion level is crucial and needs to hold. In one case the market capitalization breaks beneath this level, a further downward motility towards $50 and $44 billion are likely to exist expected.

However, property the support level at $sixty-$62 billion and a retest of the resistance area is next to occur. That resistance area tin can exist found at $73-$76 billion, which is confluent with the 100-WMA besides.

Bullish scenario

BTC USD vi-hour bullish chart. Source: TradingView

The bullish scenario for Bitcoin has two perspectives. The beginning, and probably most reliable, one would be a break of the $six,900-6,950 level, which automatically leads to a breakout of the minor downtrend.

Structuring a support/resistance flip of the $6,900-6,950 level would indicate buying force per unit area and further upwards momentum. Such a breakout would exist providing additional targets to be the $vii,200, $vii,600 and $8,000 levels every bit these are the central zones.

In the short term, the second perspective would be a double bottom structure in the $6,600 zone, after which a breakout of the downtrend occurs. If such a double bottom occurs, a breakout upwards would also indicate potential movements towards $vii,600-$8,000.

Bearish scenario

BTC USD vi-60 minutes bearish chart. Source: TradingView

The bearish outlook is straightforward and simple in structure. If the cost of Bitcoin can't break through the slight downtrend and the $half-dozen,900-$6,950 resistance level, a further downward drop is expected to occur in the coming week.

Through that perspective, levels to be watched are the $half dozen,600 level for a possible double bottom construction, but mainly the $six,350 area. This level is a monthly level, which should be expected to provide a substantial support brusque term.

Breaking below the $half dozen,350 level would create a significant volume trigger to the markets as the dropdown starts to accelerate. The next areas to expect for will be $five,600-$v,800 and after that $iv,800-$five,200.

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 risk. You should conduct your ain research when making a decision.